Today, LTG GOLDROCK will share with you the things about foreign exchange reserves ~
Foreign reserve (Foreign Exchange Reserve), also known as foreign exchange deposit, refers to the need for international payment, central banks of various countries and other government agencies concentrated and can be exchanged for foreign currency assets that can be exchanged for foreign currency assets at any time..Usually, the source of foreign exchange reserves is the trade surplus and capital inflows , and it is concentrated in the central bank to form foreign exchange reserves.The specific form is: the government's short -term deposits or other payment methods that can be fulfilled abroad, such as foreign price securities , foreign bank checks , futures votes ,,, period votesForeign currency bills and so on.It is mainly used to settle the international revenue and expenditure deficit , and when the currency of the country is sold in large quantities, the foreign exchange reserves are used to buy the country's currency intervention in the foreign exchange market to maintain the exchange rate of the country's currency.
The function of foreign exchange reserves mainly includes the following four aspects:
First, regulate international revenue and expenditure to ensure external payment;
Second, interfere with the foreign exchange market , stabilize the local currency exchange rate ;
Third, maintain international reputation and improve financing capabilities ;
Fourth, strengthen comprehensive national strength , resist financial risk .
A certain foreign exchange reserve is an important means for a country to regulate economic regulation and achieve internal and external balance.When international revenue and expenditure appears deficit , using foreign exchange reserves can promote the balance of international revenue and expenditure; when the domestic macroeconomic imbalance and the total demand is greater than the total supply , the foreign exchange organization can be used.Import, thereby regulating the relationship between total supply and total demand, and promoting the balance of macroeconomics.At the same time, when the exchange rate fluctuates, the exchange rate of foreign exchange reserves can be used to stabilize it.Therefore, foreign exchange reserves are an indispensable means to achieve economic balance stability, especially when economic globalization is constantly developing, and the economy of one country is more likely to be affected by other countries' economies.in this way.
Generally speaking, the increase in foreign exchange reserves can not only enhance the ability to regulate macro -control, but also help maintain the international reputation of the country and enterprises.Financial risk.Moderate foreign exchange reserves depend on various factors, such as import and export status, the scale of foreign debt, and actual use of foreign capital .Foreign exchange reserves should be maintained at a moderate level according to the income, cost comparison and conditions of holding foreign exchange reserves.
