Example collocations logo

Reserves in sentence

1741 examples of Reserves in a sentence

Of course, the East Asian economies today are better able to withstand such massive outflows, given their accumulation of international reserves since the financial crisis in 1997.
Indeed, the global stock of reserves has more than tripled since the Asian financial crisis.
China, for example, used nearly $500 billion of its reserves in 2015 to fight capital outflows and prevent the renminbi’s sharp depreciation; but it still has more than $3 trillion in reserves.
The stockpile of reserves may partly explain why huge outflows have not triggered a full-blown financial crisis in developing countries.
Those with high levels of foreign debt but with reserves should also consider buying back their sovereign debt in the international capital market, taking advantage of falling bond prices.
While reserves may provide some cushion for minimizing the adverse effects of capital outflows, in most cases they will not be sufficient.
Putin’s Russia needs oil at $100 a barrel and will start running out of currency reserves in 2-3 years.
In fact, the Tenth Amendment of the US Constitution explicitly reserves for the states all powers not delegated to the federal government.
This is particularly true in the advanced economies, where depleted financial reserves and political paralysis are preventing constructive investments in areas like infrastructure and education, which can enable citizens to take advantage of globalization’s benefits.
A West African country with newly discovered oil reserves needs to finance exploration, drilling, and pipeline construction, which means that it needs to hedge at a time horizon of 10-20 years, not 90 days.
Venezuela has some of the world’s largest oil and gas reserves, and is a major exporter (though smaller than ten years ago).
Instead, crisis-affected global financial entities have used it to support their efforts to deleverage and to rebuild their capital, while large corporations have been building large cash reserves and refinancing their debt under favorable conditions.
What grabbed headlines was that the IMF now believes that countries could even use capital controls, renamed “capital flow management measures,” if implemented alongside monetary and fiscal measures, accumulation of foreign-exchange reserves, and macroprudential financial regulations.
Many emerging-market policymakers view accumulation of foreign-exchange reserves during the 2000’s as having insured their countries against exchange-rate volatility and loss of export competitiveness.
Unlike in the past, however, emerging and developing countries avoided the worst, precisely because they had learned to accumulate foreign reserves and regulate cross-border capital flows, and to ease such measures to prevent or mitigate sudden stops.
Capital is flowing out of the country, and official reserves are slowly being depleted.
Indeed, China has a massive war chest of foreign-exchange reserves that it would not hesitate to use to inject capital into commercial banks.
With limited, if any, hard-currency (US dollar or gold) reserves on hand, and little prospect for acquiring dollars through export earnings, European economies attempted to shrink their current-account deficits by compressing imports from other (mostly) European countries.
After a long and spectacular “bonanza” in commodity prices since the early 2000s, driven largely by China’s investment boom, many commodity exporters found themselves with historically high levels of foreign-exchange reserves.
After all, in the past, increases and decreases in the growth rate of the monetary base (currency in circulation plus commercial banks’ reserves held at the central bank) produced – or at least were accompanied by – rises and falls in the inflation rate.
To explain this abrupt and radical change requires examining more closely the relationship between the monetary base and inflation, and understanding the changing role of the reserves that commercial banks hold at the Federal Reserve.
Banks are required by law to maintain reserves at the Fed in proportion to the checkable deposits on their books.
So an increase in reserves allows commercial banks to create more of such deposits.
To increase commercial banks’ reserves, the Fed historically used open-market operations, buying Treasury bills from them.
That made sense only if the bank used the reserves to back up expanded lending and deposits.
A bank that that did not need the additional reserves could of course lend them to another bank that did, earning interest at the federal funds rate on that interbank loan.
Essentially all of the increased reserves ended up being “used” to support increased commercial lending.
All of this changed in 2008, when a legislative reform allowed the Fed to pay interest on excess reserves.
The commercial banks could sell Treasury bills and longer-term bonds to the Fed, receive reserves in exchange, and earn a small but very safe return on those reserves.
Although a link between the Fed’s creation of reserves and the subsequent increase in spending remained, its magnitude changed dramatically.
BackNext