2  BIS Review 118/2009  I am sure we still have to discuss the role of FX loans in more detail in the future. However, I am convinced that an overly simplified view, emphasizing only type of risks, would not lead us towards a consensus view and would help little in guiding future policy measures.
Moreover, if a country must sell gold, it will probably happen during a situation of global distress, and the amplified impact on price that is typical of such situations might even make the move self-defeating.19 More generally, gold has its drawbacks: it is, as I said, costly to store, transport, and secure; it doesn’t bear interest (though it can, to an extent, be lent out in the form of term deposits); and it is difficult to sell.