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This study develops a political economy framework for reserve asset composition under conditions of geopolitical fragmentation. Following the 2022 Russian reserve freeze, traditional reserve adequacy models centered on safety, liquidity, and return fail to account for jurisdictional risk and the potential immobilization of sovereign assets. This research argues that sanctions resilience must be incorporated as a core objective of reserve management. It examines whether non-sovereign monetary assets, particularly gold and secondarily silver, can enhance reserve accessibility in emerging markets. The study hypothesizes that gold functions as a primary sanctions-resilient monetary anchor due to its non-counterparty structure and global liquidity, while silver provides limited supplementary diversification benefits. Using comparative case studies of Russia, China, and Turkey, the research analyzes reserve allocation responses to geopolitical risk and introduces a rules-based framework for sanctions-resilient reserve management.

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Apr 21st, 10:30 AM Apr 21st, 11:00 AM

Sanctions-Resilient Reserve Architecture: The Convex Monetary Anchor Framework (CMAF)

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This study develops a political economy framework for reserve asset composition under conditions of geopolitical fragmentation. Following the 2022 Russian reserve freeze, traditional reserve adequacy models centered on safety, liquidity, and return fail to account for jurisdictional risk and the potential immobilization of sovereign assets. This research argues that sanctions resilience must be incorporated as a core objective of reserve management. It examines whether non-sovereign monetary assets, particularly gold and secondarily silver, can enhance reserve accessibility in emerging markets. The study hypothesizes that gold functions as a primary sanctions-resilient monetary anchor due to its non-counterparty structure and global liquidity, while silver provides limited supplementary diversification benefits. Using comparative case studies of Russia, China, and Turkey, the research analyzes reserve allocation responses to geopolitical risk and introduces a rules-based framework for sanctions-resilient reserve management.

 

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