Gold as instrument to financial (un)stability / towards a new architecture of the international financial system

Every country had different instrument to confront with global challenges, especially global financial crisis, and others global problems. Because the crisis was transmitted primarily by trade and financial flows impact of crisis is different among the countries. From one side developed countries implemented different instrument to mitigate the effects, developing countries and transition countries are seriously affected with circumstances of financial effects. No one country funds the real instrument to protect and escape the causes in economic and financial sector. What swaps allowed many governments to do was to replace any instrument to other. But, what about gold reserves as one of instrument to confronted with financial crisis? Does the gold asset can improve and protect the financial turbulences in this and other derogation of financial market. Deeping financial analysis concludes that gold, with its lack of credit risk and liquid market, is one of the most attractive assets in diversification process. Key words: foreign exchange reserves, global financial crisis, gold reserves, JEL Classifications: F32, F41