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What does the central bank do to conserve the foreign exchange reserves?
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What do you mean by Custodian of foreign exchange reserve?
the central bank maintains foreign exchange reserves in order to promote international trade and stabilise exchange rates
Why do a nation need forex reserves?
Forex reserve or Foreign exchange reserves are only the foreign currency deposits and bonds held by central banks and monetary authorities. A country needs Foreign exchange reserves as it is important indicator of nation's ability to repay foreign debt and also for currency defense. It is also used to determine credit ratings of nations.
How can a central bank use its currency reserves to support the value of its country's currency in the foreign exchange market?
Central banks use reserves in 2 ways: 1) They acquire (buy) foreign currency, often US Dollars, with their currency to keep their currency relatively weak and so enhance exports. This is what the US is acusing China of doing. 2) They use their foreign reserves to buy their own currency and support if from falling in value. This is what happened, with limited temporary success and eventual failure in Asian currencies, such as the Thai Baht, in 1997.
Why is it that countries like the USA don't have foreign exchange reserves and what are the guidelines and disclosure norms for managing foreign exchange reserves?
The USA does have foreign exchange reserves. Their latest holding for November 2007 is $45.973 B and is published at http://www.federalreserve.gov/releases/bulletin/1207assets.htm The USA also has Special drawing rights of $9,536 B on the International Monetary Fund (IMF) and determined by the IMF by a weighted average of exchange rates for the currencies of various member countries. There are also holdings of gold and positions in the IMF to give total US reserve assets of $ 71 B.
What are the advantages of exchange rate?
The advantages of floating exchange rates are: Flexibility and automatic adjustment, Flexibility in determining interest rates, Greater insulation from other countriesâ?? economic problems, Lower foreign exchange reserves.
What do you mean by Custodian of foreign exchange reserve?
the central bank maintains foreign exchange reserves in order to promote international trade and stabilise exchange rates
What is Forex Reserves?
Foreign exchange reserves (also called Forex reserves) in a strict sense are only the foreign currency deposits held by central banks and monetary authorities. However, the term foreign exchange reserves in popular usage (such as this list) commonly includes foreign exchange and gold, SDRs and IMF reserve position as this total figure is more readily available, however it is accurately deemed as official reserves or international reserves.
Which country has largest stock of foreign exchange reserves in the world?
China's foreign exchange reserves is $2.13 trillion
Why do a nation need forex reserves?
Forex reserve or Foreign exchange reserves are only the foreign currency deposits and bonds held by central banks and monetary authorities. A country needs Foreign exchange reserves as it is important indicator of nation's ability to repay foreign debt and also for currency defense. It is also used to determine credit ratings of nations.
What has the author I H Kilato written?
I. H. Kilato has written: 'Foreign exchange management' -- subject(s): Foreign exchange administration, Foreign exchange reserves
Foreign exchange reserves in India?
$ 302.6 billion as of March 2011
What is the rank of India in foreign exchange forex reserve?
India holds ninth position in terms of foreign-exchange reserves as of may 2012.
How can a central bank use its currency reserves to support the value of its country's currency in the foreign exchange market?
Central banks use reserves in 2 ways: 1) They acquire (buy) foreign currency, often US Dollars, with their currency to keep their currency relatively weak and so enhance exports. This is what the US is acusing China of doing. 2) They use their foreign reserves to buy their own currency and support if from falling in value. This is what happened, with limited temporary success and eventual failure in Asian currencies, such as the Thai Baht, in 1997.
Why is it that countries like the USA don't have foreign exchange reserves and what are the guidelines and disclosure norms for managing foreign exchange reserves?
The USA does have foreign exchange reserves. Their latest holding for November 2007 is $45.973 B and is published at http://www.federalreserve.gov/releases/bulletin/1207assets.htm The USA also has Special drawing rights of $9,536 B on the International Monetary Fund (IMF) and determined by the IMF by a weighted average of exchange rates for the currencies of various member countries. There are also holdings of gold and positions in the IMF to give total US reserve assets of $ 71 B.
What has the author A E Jasay written?
A. E Jasay has written: 'Making currency reserves \\' -- subject(s): Foreign exchange
What has the author Ketil Hviding written?
Ketil Hviding has written: 'Can higher reserves help reduce exchange rate volatility?' -- subject(s): Foreign exchange administration
How is cash and currency valued?
They are valued according to the gold/foreign currency reserves with which it is backed up. These reserves are kept by central bank and they are increased when issuing new notes.
