list of countries by foreign exchange reserves.

[AUz]

Alhamdulillah. Allah truly blessed this land and answered the prayers of Ibrahim.

Please stay blessed, but stop interfering in other Muslim countries without any need of it..

Kindly, spread Islam in far lands like Brazil, Argentina, China etc..Why spreading Islam in already Muslim lands? Thats an overdose and over-dose kills....just like it has killed once vibrant Pakistani society...

 

[Chinese-Dragon]

What does this mean having these reserves because alot of large economies have small reserves. Are the reserves in dollars?

Reserves are usually stored in a basket of different currencies.

Currency reserves are a government's "financial firepower" and can be used to do all sorts of things, from boosting the economy, to defending the national currencies on the market. They are the most useful during times of recession, and if used right can stop the country from falling into recession at all.

Currency reserves are normally compared against the Foreign Debt a country has, since Foreign debts are paid in foreign currencies. So if the debt is called in, how much trouble will you be in?

Also, imports need to be paid for with foreign currency. So currency reserves are also measured on how months of imports they can support, in a worst case scenario.

 

[Yabgu]

Reserves are usually stored in a basket of different currencies.

Currency reserves are a government's "financial firepower" and can be used to do all sorts of things, from boosting the economy, to defending the national currencies on the market. They are the most useful during times of recession, and if used right can stop the country from falling into recession at all.

Currency reserves are normally compared against the Foreign Debt a country has. So if the debt is called in, how much leeway do you have?

Also, imports need to be paid for with foreign currency. So currency reserves are also measured on how months of imports they can support, in a worst case scenario.

What if China uses let's say 500 billion of it right now on the poorer areas it will develop all the poorer areas of the country to high standards.

 

[Chinese-Dragon]

What if China uses let's say 500 billion of it right now on the poorer areas it will develop all the poorer areas of the country to high standards.

That's what I thought first too.

But the problem is that investment is already over-saturated in China. It is leading to worries of an investment bubble.

So instead, we use those reserves to buy resource fields and land overseas. This puts the money to good use, provides an additional revenue stream for further use, and does not contribute to over-saturation in China's economy. (And is also strategically helpful to us, by securing resource routes).

When more Chinese people move out of the countryside to the cities, then that money can be brought in for another investment boom.

 

[xuxu1457]

What if China uses let's say 500 billion of it right now on the poorer areas it will develop all the poorer areas of the country to high standards.

The money is not belong to government, eg, I earn 50$ and I take Yuan from bank, and 50$ stays at bank, becomes foreign exchange reserves, the money can't be consumed, bcs the same money had been token out by Yuan type, left $ or EU type

 

[JUBA]

Please stay blessed, but stop interfering in other Muslim countries without any need of it..

Kindly, spread Islam in far lands like Brazil, Argentina, China etc..Why spreading Islam in already Muslim lands? Thats an overdose and over-dose kills....just like it has killed once vibrant Pakistani society...

We are God's chosen people, we have the right to interfere in any country we want, Muslim and non Muslim.

 

[Cherokee]

We are God's chosen people, we have the right to interfere in any country we want, Muslim and non Muslim.

wahahahahahahaha . Stop trolling man !!

 

[AUz]

We are God's chosen people, we have the right to interfere in any country we want, Muslim and non Muslim.

hahha..so Saudis are Jews?

 

[StarCraft_ZT]

The inter-bank foreign exchange market of yuan exchange rate：1 dollar to 6.1751 yuan. And the USD keep going depreciated...Next year, maybe 1 dollar to 5 yuan?

Yuan keeps appreciating while USD keeps depreciating. The consequence is that China's foreign exchange reserve will shrink and evaporate seriously...

US government keeps printing money without causing inflation because China government pays for its redundant currency by purchasing US bonds. So, the most vulnerable economy is China...we pay for US's bonds and undertake the risk of depreciated USD. BAD IDEA!!!

Two solutions:

China should make a balanced portfolio of foreign exchange reserve by adding more Euro and Japan Yen to central bank's account and holding less risky USD.

Another solution, China make yuan the most predominant international reserve currency rather than purchase US government bonds to increase foreign exchange reserves... This is what our government's long term goal.

 

[StarCraft_ZT]

What if China uses let's say 500 billion of it right now on the poorer areas it will develop all the poorer areas of the country to high standards.

Foreign exchange reserves is liability of central bank. It is not asset. It cannot be consumed. Its main purpose is to pay balance of payments deficit and stabilize the country's exchange rate by interfere with foreign exchange market.