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Reserve in sentence

857 examples of Reserve in a sentence

Perhaps the allure of belonging to a growing reserve currency will make sustained recession and austerity feasible in ways that have seldom been seen historically.
One way that China is attempting to find out is by pushing to have the renminbi added to the basket of currencies that determine the value of the International Monetary Fund’s reserve asset, the Special Drawing Right (SDR).
In a 2011 book, the economist Arvind Subramanian projected that the renminbi would become a global reserve currency by the end of this decade, or early next decade, based on his observation that the lag between economic and currency dominance is shorter than traditionally believed.
The post-war Bretton Woods arrangements institutionalized the role of the US dollar as the main reserve currency, and until the 1970s, about two-thirds of global GDP was anchored to the greenback.
In a recent study that I undertook with Ethan Ilzetzki and Kenneth Rogoff, we document that the US dollar has retained its dominant position as the world’s reserve currency – and by a significant margin.
The divergence between the trends for production and finance, shown in the figure, emerges as a relatively smaller US economy supplies reserve assets in step with rising global demand for them (primarily from emerging markets).
The incompatibility of the national goal (maintaining the parity) and America’s international role as sole provider of the reserve currency was the essence of the dilemma that the Belgian economist Robert Triffin foresaw (as early as 1960) as a risk to the Bretton Woods system.
Of course, while the link to gold is passé, any domestic fiscal objective to curb US debt growth would be at odds with the international role as sole provider of the reserve currency.
Alternatively, China could eventually become a new supplier of reserve assets.
In this scenario, the supply of the reserve asset would align with the world’s fast-growing regions.
This connection could be direct, if the renminbi acquires reserve-currency status; or indirect, if the International Monetary Fund’s unit of account, special drawing rights, becomes a favored asset of reserve managers, as the renminbi is now in the SDR currency basket.
But there is a third possibility: global demand for US reserve assets may subside.
Sarkozy’s rhetoric suggests that he hankers after new international agreements on exchange rates, and, indeed, perhaps a new global reserve currency.
US politicians take this for granted as a special privilege bestowed by the dollar’s position as the world’s major reserve currency.
Indeed, deficiencies in the global monetary system contributed to several economic failings in recent years: excess global liquidity; over-accumulation of dollar-denominated reserve assets; uneven policy responses to current-account surpluses and deficits; resistance to necessary exchange-rate adjustments in the emerging world; and coexistence of inflation and deflation at a global level.
The People’s Bank of China’s ongoing reserve losses are a salient recent example.
Worries about overvalued currencies permeated policy discussions in many emerging markets as recently as 2013, and sustained efforts to lean against the wind of appreciation resulted in record reserve accumulation for many central banks.
Although no currency is as of yet qualified to replace the dollar as the world’s reserve and transaction currency, this “exorbitant privilege,” as Charles de Gaulle put it, has come under stealthy attack.
Two popular brands in China are Qomolangma Glacier, sourced from a supposedly protected reserve linked to Mount Everest, on the border with Nepal, and 9000 Years, named after the assumed age of its glacial source.
In addition to bringing global warming under control by reducing greenhouse gas emissions, we must build a much larger and more sophisticated global conservation reserve system that encompasses the most wildlife-rich land and marine areas.
Given that the US dollar and the euro are the top two international reserve currencies, spillovers should be considered the new normal.
Although these reserve estimates are based today's known deposits, we should not pin our hopes on vast undiscovered supplies.
Even if gas hydrate will never be economically competitive with conventional gas, it may have value as a strategic energy reserve.
At the root of the problem are the structural trade and current-account imbalances that arise from the so-called Triffin dilemma: in order to meet global demand for the US dollar as a reserve currency, the United States must run persistent current-account deficits with the rest of the world.
To be sure, the guarantee that the US, as the issuer of the dominant international reserve currency, can acquire low-cost funding for its fiscal deficit and national debt amounts to what former French President Valéry Giscard d’Estaing famously called America’s “exorbitant privilege.”
All that is needed is a major reserve currency that is not issued by a national authority.
A better option is the IMF’s Special Drawing Right (SDR), which the second amendment of the body’s Articles of Agreement asserts should become the world’s “principle reserve asset.”
Yet the SDR is not used widely enough to serve as a major international reserve currency.
Such an “e-SDR” would, in a sense, be the quintessential reserve asset, because it would be fully backed by reserve currencies, in the IMF-determined ratio.
Of course, to enable a gradual shift from the US dollar to an e-SDR as the dominant international reserve currency, a sufficiently large e-SDR-denominated money market would need to be created.
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