Foreign exchange equalization account

Foreign exchange equalization account is a government fund set up under a gold exchange standard for handling the foreign exchange operations of the country's residents. The fund is usually established by a government grant of a certain quantity of gold and/or foreign exchange for its operations, which are normally carried on in secret in an attempt to stifle and hide from the public the inevitable effects of a domestic inflation and/or credit expansion. The foreign exchange equalization account of the United States is known as the Exchange Stabilization Fund.