Monetary reserve

(redirected from Foreign exchange reserve)

Monetary Reserve

The foreign currencies and precious metals that a central bank holds. A central bank's monetary reserve allows it to regulate its own currency; that is, a central bank with a large amount of reserves in euros is likely to closely follow or even peg its currency to the euro. On the other hand, central banks that keep monetary reserves in multiple currencies are more likely to follow either a basket peg or to have a floating currency. A monetary reserve is also called a currency reserve.

Monetary reserve.

A government's monetary reserve includes the foreign currency and precious metals that its central bank holds. That reserve enables the government to influence foreign exchange rates and to manage its transactions in the international marketplace.

For example, a country with a large reserve of US dollars is in a position to make significant investments in US markets.

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Within the major economies running current account deficit, India is among the largest foreign exchange reserve holders and sixth largest among all countries of the world.
During the last decade, there has been a sharp increase in the foreign exchange reserve globally from US$2 trillion in December 2000 to US$11 trillion in April 2013.
Higher export income and a feeble growth in imports have virtually driven Bangladesh's foreign exchange reserve to set a new record," Hassain Zaman, chief economist of the central bank of Bangladesh told Xinhua.
The growth seen in the foreign exchange reserve was down almost entirely to Qatar and Turkey, after each offered around half a billion US dollars worth of aid.
During the month, the following flows have taken place:* EUR 1,674 million inflows, representing changes in the Ministry of Public Finances' accounts, changes in the foreign exchange reserve requirements of the credit institutions, income from the management of foreign exchange reserves, a.
Meanwhile, the country's foreign exchange reserve by the end of March reached US$59 billion enough to pay imports and service foreign debt for five months.
The foreign exchange reserve decline that continued in October this year too is largely the result of the country's foreign loan repayments, says the National Bank of Macedonia.
Global Banking News-January 5, 2015--Turkish central bank raises foreign exchange reserve requirement ratios
EUR 2,014 million worth of inflows, representing changes in the foreign exchange reserve requirements of the credit institutions, inflows in the Ministry of Public Finances' accounts, inflows into the European Commission's account, income from the management of foreign exchange reserves, a.
5 billion the amount of foreign exchange reserve it holds, Anwar Nasution, deputy governor of Bank Indonesia said in a working meeting with the state budget committee at the House of Representatives yesterday.
The main function of the CBE's foreign exchange reserve, with its various gold and international currency components, is to provide commodities, repay premiums and interests of external debts, and cope with economic crises, in exceptional circumstances where foreign currency natural resources are affected.
EUR 2,761 million worth of inflows, representing changes in the foreign exchange reserve requirements of the credit institutions, inflows in the Ministry of Public Finances' accounts, inflows into the European Commission's account, income from the management of foreign exchange reserves, a.

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