Reserves
in sentence
1741 examples of Reserves in a sentence
Dependency on coffee or cocoa exports requires a build-up of precautionary
reserves.
Today’s big surplus countries do not need large
reserves.
Incredibly, Russia’s largest company - with one third of the world’s gas
reserves
- is unprofitable because of poor management and theft.
Because oil consumers generally spend extra income fairly quickly, while governments (which collect the bulk of global oil revenues) usually maintain public spending by borrowing or running down reserves, the net effect of lower oil prices has always been positive for global growth.
Given the enormous advances in oil-extraction technology since the 1970s and the immense size of Iran’s
reserves
(the fourth-largest in the world, after Saudi Arabia, Russia, and Venezuela), restoring output to the levels of 40 years ago seems a modest objective.
They are also home to many of the world’s critical natural resources, possessing around 60% of proven oil
reserves.
Banks on the list must keep higher reserves, and maintain more liquidity, reflecting their status as systemically important institutions.
Russia has vast untapped oil
reserves
of its own, and prefers investment in them.
With its rich biodiversity, Costa Rica has also demonstrated far-sighted environmental leadership by pursuing reforestation, designating a third of the country protected natural reserves, and deriving almost all of its electricity from clean hydro power.
Meanwhile, Malaysia, Nigeria, and Chile have already acquired modest amounts of renminbi
reserves.
Recognizing the significance of this strategy exposes a common fallacy whereby the global savings glut is attributed to emerging-market countries’ desire to insure themselves against financial turmoil by acquiring dollar
reserves.
And, complicating things further, given US banks’ vast holdings of excess
reserves
as a result of the Fed’s bond-buying policies (quantitative easing), the federal funds rate is no longer the key policy rate that it once was.
Instead, the Fed will be focusing on the interest rate on excess
reserves.
Underused land
reserves
also exist elsewhere in South America, Central Asia, and Eastern Europe.
Reserves
of minerals like phosphate will remain plentiful in the next decades, and nitrogen is not limited.
I also am convinced of the need to find ways to bring into play the resources of countries with large
reserves.
Yet, unlike many emerging economies, China does not struggle with a currency mismatch, thanks to its large foreign-exchange
reserves
and persistent current-account surpluses, which make it a net lender to the rest of the world.
If it restarted those interventions, presumably it would be attempting to stem the renminbi’s fall by selling foreign-exchange
reserves.
Yet in the second quarter of July, when the renminbi was declining rapidly, China’s foreign-exchange
reserves
actually increased.
But it is also possible that the PBOC has used China’s foreign-exchange reserves, without updating the published balance of payments accordingly.
At that time, the PBOC’s frenetic interventions drained some $1 trillion from China’s foreign-exchange
reserves
in less than two years.
Indeed, one of the most fascinating proposals to this effect came at the beginning of World War I, when the Russian Empire found that its limited capacity to borrow on international capital markets and its low foreign-currency
reserves
left it unable to create an effective military force.
Once they succeeded in overcoming a painful crisis-management phase, many of these countries accumulated previously unthinkable levels of international
reserves
as precautionary cushions.
Other metrics, which include the proportion of trade invoiced in dollars and the share of US assets (notably Treasuries) in central banks’ foreign exchange reserves, suggest a similar degree of “dollar dominance.”
With recovery from WWII underway in Europe and global trade expanding, demand for
reserves
grew rapidly in the 1950s and remained high into the early 1970s.
Given that the world’s gold supplies were not increasing as fast as global demand for reserves, the gap was filled by US (paper) debt.
Over time, fulfilling the global demand for
reserves
caused a steady rise in the ratio of “paper dollar”
reserves
to gold reserves, which was incompatible with maintaining the official dollar/gold parity.
While China’s ongoing capital flight is fueling an immediate and substantial decline in demand for US Treasuries, a more sustainable scenario would entail China’s transition to a managed floating exchange-rate regime with a deeper domestic financial market – and less emphasis on maintaining a credible war chest of foreign
reserves.
Indeed, China’s phenomenal economic success – illustrated by its world-beating trade surplus, world’s largest foreign-currency reserves, and highest steel production – owes a lot to the West’s decision not to sustain trade sanctions after the Tiananmen Square massacre.
That rapidly depleted its modest foreign-exchange reserves, triggering a severe financial crisis in 1991, which in turn compelled India to embark on radical economic reforms that laid the foundations for its economic rise.
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