But the international supply of two key reserve assets gold and the U.S. dollar proved inadequate for supporting the expansion of world trade and financial development that was taking place.
Under this structure from 1879 to 1913, gold served as both the primary reserve asset for central banks and the means of settling international payments deficits.
In addition, central banks have been buying more gold, most recently, the Reserve Bank of India, while bought 200 tonnes from the International Monetary Fund at the start of this month.