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Reserves in sentence

1741 examples of Reserves in a sentence

Alternatively, it may intervene and sell international reserves, reducing the stock available to repay dollar debt.
The BIS, founded in 1930 to help manage German reparation payments and to coordinate activities among central banks, served as little more than repository for gold reserves in the years following World War II.
So, although India might initially absorb some international capital, it might ultimately prefer to build foreign reserves by running small external deficits or even a surplus.
The US Department of Energy estimates that such methods could make 67 billion barrels of oil – three times the volume of proven US oil reserves – economically recoverable.
Furthermore, the government maintains high buffers: debt is relatively low, and foreign-exchange reserves are relatively high.
Particularly damaging is the $17.7 billion in foreign-exchange reserves that France keeps in a special Treasury account at an interest rate of only 1.5%, thereby guaranteeing the convertibility of the CFA franc, which it underwrites.
In other words, France uses African reserves to finance part of its budget deficit at a concessional interest rate.
It also has a sovereign wealth fund currently valued at over $600 billion and set to rise to $1 trillion by 2020, owing to vast reserves of oil and gas.
In the aftermath of the Asian financial crisis of the late 1990’s, China amassed some $3.2 trillion in foreign-exchange reserves in order to insulate its system from external shocks.
In order to maintain a tight relationship between the renminbi and the dollar, China had to recycle a disproportionate share of its foreign-exchange reserves into dollar-based assets.
China recognizes that it no longer makes sense to stay with its current growth strategy – one that relies heavily on a combination of exports and a massive buffer of dollar-denominated foreign-exchange reserves.
Second, the costs of the insurance premium – the outsize, largely dollar-denominated reservoir of China’s foreign-exchange reserves – have been magnified by political risk.
Second, countries with large accumulations of dollar reserves will be shifting substantial fractions of those reserves into euros.
Central banks in Asia and the Middle East have traditionally held their reserves in dollars.
That made sense when they needed those reserves to be very liquid so that they could bridge temporary trade deficits.
But those foreign-exchange balances have grown far beyond the level needed as emergency reserves.
Will the explosive growth of commercial banks’ excess reserves cause rapid inflation as the economy recovers?
It will also use its new authority to pay interest on the reserves held by commercial banks at the Fed in order to prevent excessive lending.
Most Chinese debt is held in renminbi; the country possesses massive foreign-exchange reserves of close to $3 trillion; and capital controls are still effective, despite having been eased in recent years.
If (and only if) it proves successful for large-scale use, coal-dependent countries like China, India, and the United States could continue to use their reserves.
Russia’s international reserves have fallen by $135 billion, and inflation has reached double digits.
When the ruble tumbled in December, the finance ministry – which holds almost half of Russia’s foreign reserves, $169 billion, in two sovereign-wealth funds – deemed the central bank’s intervention to be insufficient.
So it announced that it would sell $7 billion from its reserves to boost the ruble – a move that caused the exchange rate to overshoot on the upside.
America absorbs Chinese imports, pays China in dollars, and China holds dollars, amassing $2.5 trillion in foreign-exchange reserves, much of it held in US Treasury securities.
China would not only reduce the value of its reserves as the dollar’s value fell, but it would also jeopardize America’s continued willingness to import cheap Chinese goods, which would mean job losses and instability in China.
Thus, the renminbi is unlikely to challenge the dollar’s role as the largest component of world reserves (more than 60%) in the next decade.
Obviously, a country whose currency represents a significant proportion of world reserves can gain international power from that position, thanks to easier terms for economic adjustment and the ability to influence other countries.
But the most recent RRR increases serve mainly to sterilize the “passive money supply” caused by the increase in foreign-exchange reserves.
Indeed, in September alone, China’s foreign-currency reserves increased by almost $100 billion compared to August.
But rapid growth in foreign-exchange reserves means an increase in the domestic money supply, because the PBC issues RMB6.64 (down 3% since June) for every dollar it receives.
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