Providing unlimited liquidity to Cyprus would expose the European Central Bank's balance sheet to risk, particularly if Cyprus does end up crashing out of the euro.

WSJ: Now We Are Seeing Politics in the Raw

If the European Central Bank has to expand its balance sheet to shore up ailing European economies, gold is likely to hit new records into 2012, said TD Securities.

FORBES: METALS OUTLOOK: Gold Expected To Continue To Rise Next Week

The privately owned gold held in Turkish commercial banks has shown up on the balance sheet for the central bank, resulting in news reports of inflated official-sector reserves in the country, the consultancy said.

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Buying masses of exchange-traded funds would expose the central bank directly to the stockmarket, and so put its balance sheet at risk.

ECONOMIST: The Bank of Japan

About a year ago, economic forecasters claiming insight into Fed deliberations spread the word that the central bank had devised a methodical exit strategy to unwind its balance sheet.

FORBES: No Exit, Stage Left or Right

Nor will our central bank seek once again to dramatically increase the size of its balance sheet.

FORBES: Fed's Next Move Will Be To Ease Interest Rates

However, market onlookers are changing the shape of what they expect the Fed to deliver and rather than expanding their balance sheet, investors are sensing that the central bank might rejig the composition of its holdings in an effort to deliver borrowers with more attractive financing options.

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Germany was said to be more comfortable with this idea, since it didn't involve any central bank financing governments directly, and it would formally keep the credit risk off the balance sheet of the ECB.

BBC: Draghi's message for artful euro-dodgers

Indeed, the yen's previous rise partly reflects the Bank of Japan's reluctance to expand its balance sheet as much as the Fed, BOE, or the European Central Bank.

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