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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References in periodicals archive ?
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.
Bangladesh's foreign exchange reserve crossed the 19 billion U.
On May 31st 2010, National Bank of Romania's foreign exchange reserves stood at EUR 31,989 million, compared to EUR 32,386 million on April 30th 2010.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.s.o.;* EUR 2,071 million outflows, representing changes in the foreign exchange reserve requirements of the credit institutions, payments from the European Commission's account, interest and principal payments on public and publicly guaranteed external debt, a.s.o.The gold stock has held steady at 103.7 tonnes.
The debt repayment will also reduce by US$ 1.5 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.
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.s.o.;* EUR 2,280 million outflows, representing changes in the foreign exchange reserve requirements of the credit institutions, interest and principal payments on public and publicly guaranteed external debt, a.s.o.
Hong Kong's foreign exchange reserve assets amounted to $113.7 billion at the end of February, down from $115.6 billion in January, the Hong Kong Monetary Authority said Friday.
Table 4: Real foreign exchange reserve (FER) and predicted FER.
The foreign exchange reserve balances at the Central Bank of Egypt (CBE) continued to rise during March 2018, scoring $42.611bn compared to $42.0524bn at the end of February, marking an increase of $87m.
According to conservative estimates, with a difference of 2% between the investment profit rate and foreign exchange reserve rate, if you have 600 billion dollars in foreign exchange reserves, the annual loss will be more than 10 billion dollars.
* 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.s.o.;* EUR 3,195 million outflows, representing changes in the foreign exchange reserve requirements of the credit institutions, interest and principal payments on public and publicly guaranteed external debt, a.s.o.
Iran's foreign exchange reserves will reach $138 billion in 2012.

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