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Reserve in sentence

857 examples of Reserve in a sentence

In 2010-2011, the PBOC increased the reserve requirement ratio (the percentage of deposits banks must hold at the PBOC) 11 times – from 16% to 21% – in order to curb inflation and prevent overheating.
Many advocates of the euro wish to see it rival the dollar as an international reserve currency.
Indeed, those governments lucky enough to issue the world’s reserve currencies are able to take on this role without overloading future taxpayers with inordinate debt burdens.
If negative trends continue, Russia’s reserve fund could eventually be exhausted.
That meeting produced a notable broadside against the United States, as each member declared its desire to unseat the dollar as the global reserve currency.
In a fully flexible market labor with, as it were, a reserve army of robots, the potential for pervasive automation can depress real wage growth even with full employment.
One solution could be to adjust its international reserve asset, the Special Drawing Rights (SDR), by adding the Chinese renminbi to the basket of currencies that determines its value.
The SDR became a poor option for storing value, with a lower yield than other reserve assets.
Yet, since the world has not faced a real liquidity shortage since 1971, the SDR’s use as a global reserve asset has remained limited.
In short, the SDR is used less as a reserve asset than as the IMF’s own unit of account.
The logic behind the SDR’s creation was sound: The world needed an international reserve asset that mirrored global trade.
Moreover, unlike major developed economies, most of which have used up all of their conventional monetary-policy ammunition by reducing their policy interest rates to zero, China has plenty of monetary stimulus on reserve to address cyclical disruptions.
Instead, they have reverted to strict reserve requirements, effectively rationing credit and thereby causing a domestic credit squeeze in the midst of the current international financial crisis, which is likely to force some medium-sized banks into bankruptcy because of liquidity problems.
But China is likely to increase its voice on one issue – the US dollar’s status as global reserve currency.
The People’s Bank of China should maintain reserve requirements for commercial banks to contain credit creation, rather than reject them as old-fashioned, as occurred in the advanced economies in the decades before 2008.
For any fundamental reforms must address not only the difficult problems posed by the global reserve system and the burdens of risk borne by the developing countries, but also global governance.
While American leaders, including Obama, have complained about free riders, the US has long taken the lead in providing key global public goods: security, a stable international reserve currency, relatively open markets, and stewardship of the Earth’s commons.
Recent experience with the euro as an official reserve asset is instructive.
By contrast, a stock with lower mortality for large individuals at least maintains an adequate reserve of large individuals available as spawners next year.
However rare changes in reserve currencies have been historically, the current situation is no longer tenable; but a switch could further destabilize the world economy.
While I share these concerns, others frequently rely on two key arguments to dismiss the fear of a run on the dollar: the dollar is a reserve currency, and it carries fewer risks than other currencies.
Consider first the claim that the dollar’s status as a reserve currency protects it, because governments around the world need to hold dollars as foreign exchange reserves.
The obvious candidate for this reserve fund was US Treasury bills.
In short, the US no longer has what Valéry Giscard d’Estaing, as France’s finance minister in the 1960’s, accurately called the “exorbitant privilege” that stemmed from having a reserve currency as its legal tender.
But some argue that, even if the dollar is not protected by being a reserve currency, it is still safer than other currencies.
Furthermore, the high reserve ratio and forced purchase of central-bank bills squeezes commercial banks’ profits severely – a phenomenon that will be intensified by interest-rate liberalization.
These two developments should stimulate the Fund to claim a new purpose as the world’s reserve manager.
Like past reserve regimes that offered a choice of assets (for example, the dollar, the pound, and gold in the interwar period), instability is inherent.
The new surplus countries’ attempts to find alternative reserve assets have been problematic.
The IMF could be a powerful financial stabilizer if it managed a significant part of the new surplus countries’ reserve assets, for it would be well placed to take bets against speculators.
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