Monetary reserve

(redirected from Foreign currency 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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Despite double-digit growth in remittance inflows, the country, however, struggles to manage the foreign currency reserve due to the swelling trade deficit.
The fact is that the government's foreign currency reserve is continuously declining.
Global Banking News-December 1, 2017--Belarus central bank to raise foreign currency reserve requirements for banks
Hong Kong's official foreign currency reserve assets has risen for five consecutive months to $218.1 billion in July, up $11.6 billion on June, the Monetary Authority said on Friday.
This is why we need to strengthen the foreign currency reserve. This is part of our work to safeguard financial stability," Riksbank governor Stefan Ingves said.
Hong Kong's foreign currency reserve assets stood at US$112.5 billion at the end of July, slightly up from US$112.4 billion in June, the Hong Kong Monetary Authority said Wednesday.
| ALGIERS, July 1 (KUNA) -- Foreign currency reserve in Algeria reached USD 182.22 billion by end of 2011, the Algerian central bank said Sunday.
Summary: TEHRAN (FNA)- Iranian Minister of Economic Affairs and Finance Seyed Shamseddin Hosseini said that the volume of Iran's foreign currency reserve will increase to $100bln this year, adding that Tehran has adopted special initiatives to boost business activities inside the country.
Hong Kong's official foreign currency reserve assets has risen for four consecutive months to $207 billion in June, up $1.9 billion on May, the Monetary Authority said on Tuesday.<br /><br />Including unsettled forward contracts, foreign currency reserve assets stood at $208.2 billion, up $3.1 billion from the end of May.<br /><br />Hong Kong is the world's seventh-largest holder of foreign currency reserves based on the latest published figures, after the Mainland, Japan, Russia, Taiwan, India and South Korea.<br /><br />The total foreign currency reserve assets of $207 billion represent over eight times the currency in circulation, or 47% of Hong Kong dollar M3, the official said in a statement.
Hong Kong's foreign currency reserve assets totaled US$113.7 billion at the end of August, down from US$114.6 billion at the end of July, the Hong Kong Monetary Authority said Friday.

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