The gold is then transferred to the vault of the country with a favorable balance from the country owing a payment. After W.W.II, the U.S. was producing for the world and gold was flowing into its coffers. By 1972, the balance of payments had shifted and the U.S. became a debtor, even though its exports were still larger than imports. U.S. gold supplies dwindled. Today, nations are no longer on the gold standard.
Countries equate their currency in terms of the dollar.
Of course, governments understand the risk of holding another country's paper. This is something over which they have no control. Numerous schemes have been devised and are continually being devised and revised by the world's biggest trading nations in an attempt to bring stability to international finances. However, regardless of what they do, their schemes are all based on credit, promises and hope, not real value. When the house of cards threatens to come down, governments as well as people, will race back into gold, precious metals and other commodities.