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Reserves in sentence

1741 examples of Reserves in a sentence

Three Cures for Three CrisesA full-scale financial crisis is triggered by a sharp fall in the prices of a large set of assets that banks and other financial institutions own, or that make up their borrowers’ financial reserves.
In order to mollify investors in the face of increased default risk, China’s government might force commercial banks to strengthen their balance sheets through collateralization or to swap defaulted loans for new bonds, backed by China’s foreign reserves held in US Treasuries.
The proposals that the SEC rejected were aimed at making money-market funds more robust by requiring that each fund maintain capital reserves or let its value “float” – and not be rounded up – to reflect its true, underlying risk.
If money-market funds had to maintain capital reserves, industry representatives argued, yields to investors would decline and the industry’s profits would suffer.
Banks are obliged to hold reserves, maintain capital, and pay deposit insurance to ensure that they can honor their deposits.
As a result of the SEC’s inaction, money-market funds will continue to operate outside the scope of bank-style rules on capital and reserves, even though investors treat them like bank accounts.
But inflows through money-market funds are not so bad for banks, which get the cash without having to set aside reserves or pay for deposit insurance.
Likewise, before the 1997 Asian financial crisis, the IMF and financial markets were unaware that Thailand’s central-bank reserves had been nearly depleted (the $33 billion total that was reported did not account for commitments in forward contracts, which left net reserves of only about $1 billion).
(This highlights the importance of tracking net, rather than gross, reserves.)
Central banks understandably seek more reserves as their economies grow.
But if those reserves mainly take the form of dollars, then their rising demand allows the United States to finance its external deficit at an artificially low cost.
This means that the SDR is not an attractive unit for official reserves.
Despite the trials and tribulations of the American economy, dollar securities remain the dominant form of reserves because of the unparalleled depth and liquidity of US markets.
The attempt to ensure that the losses are not recognized might tempt the Fed to rely excessively on untested, uncertain, and costly monetary-policy tools – like paying high interest rates on reserves to induce banks not to lend.
The reason is simple: while base money is soaring, the velocity of money has collapsed, with banks hoarding the liquidity in the form of excess reserves.
Indeed, a report that Cyprus might sell a small fraction – some €400 million ($520 million) – of its gold reserves triggered a 13% fall in gold prices in April.
Countries like Italy, which has massive gold reserves (above $130 billion), could be similarly tempted, driving down prices further.
OXFORD – Throughout the history of the oil industry, fear and concern about the imminent exhaustion of oil reserves has been a recurring theme.
A major problem is that such predictions often confuse resources with reserves.
Fortunately, the focus of the debate is on reserves and not resources.
Reserves are defined as the quantities of petroleum that are expected to be commercially recoverable from known fields.
The concept of reserves is technical and economic, not geological.
It is also a non-static concept, as estimates of reserves will generally be revised upwards or downwards as additional geologic or engineering data become available, as technology improves, and/or as economic conditions (such as oil prices and production costs) change.
In fact, the bulk of recent growth in world reserves is due not to new discoveries, but mainly to reserve growth and improved recovery rates.
With technological progress and rising oil prices, most of these reserves will become conventional, helping to push back peak oil for years.
The failure to distinguish clearly between resources and reserves – and to recognize the importance of prices, costs, and technology in transforming resources into reserves – results in bad predictions about an imminent peak in oil production and misinformation that has had a negative impact on policymaking.
In the short term, there are concerns that oil production will peak soon, owing not to the unavailability of reserves, but to obstacles to investment – for example, access to reserves, sanctions, and policy uncertainty.
History suggests that collective negotiation about currencies and a new approach to the issue of reserves are unlikely to succeed.
Indeed, indigenous reserves in the Brazilian Amazon have played a critical role in lowering deforestation rates – at a considerable cost.
Capital outflows of this magnitude are likely to have myriad effects: drying up liquidity, increasing the costs of borrowing and debt service, weakening currencies, depleting reserves, and leading to decreases in equity and other asset prices.
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