Reserves
in sentence
1741 examples of Reserves in a sentence
But, rather than being used to facilitate increased commercial bank lending and deposits, the additional
reserves
created in this process were held at the Fed – simply the by-product of the effort, via QE, to drive down long-term interest rates and increase household wealth.
But the main reason for India’s good relations with Myanmar’s ruling thugs is the country’s vast and still largely unexploited energy reserves, which India desperately needs to fuel its economic boom.
Fifth, and finally, major holders of
reserves
must agree to deploy them in a way aimed at maintaining global financial stability and preventing excessively volatile exchange-rate and capital movements.
As long as Asia holds its foreign
reserves
in dollars China’s desire to maintain a stable value for the reminbi will continue to offer tremendous advantages for trade and economic development.
Japan alone has foreign exchange
reserves
of around $750 billion, much of that in US treasury bills.
China, Hong Kong, India, Korea, Singapore, and Taiwan together have another $1.1 trillion or so in reported foreign exchange
reserves.
But if he pursues his protectionist promise to put “America first,” which smacks of xenophobic nationalism, investors and central banks could gradually be impelled to find alternative
reserves
for their spare billions.
In the United Kingdom, banks have been criticized for not lending the
reserves
created by quantitative easing to the real economy, leading the Bank of England to introduce its “funding for lending” scheme in 2012.
Moreover, they have adopted a negative interest-rate policy – which amounts to charging a fee for bank
reserves
– to revitalize depressed demand.
The underlying idea is simple: every year, countries around the world set aside
reserves
as insurance against contingencies such as an abrupt downturn in foreign lenders' sentiment or a collapse of export prices.
The amounts held in
reserves
are huge - roughly $1.6 trillion worldwide.
Countries like to keep their
reserves
growing in tandem with growth in imports and other foreign liabilities.
Countries hold these
reserves
in a variety of forms, including gold and US Treasury bills.
Countries that receive more than they must put into
reserves
could exchange the new money for conventional currencies.
Eventually, all the new money will wend its way into reserves, which in effect represent a commitment by countries to help each other in times of trouble.
A country with
reserves
of the new global money could exchange it for hard currencies to sustain needed food imports or other goods.
Global greenbacks would offset the deflationary bias in today's arrangements that results from the fact that part of the income set aside as
reserves
never gets translated into global aggregate demand.
But if most advanced countries were to recognize this new form of global money, they could put pressure on holdouts by limiting their holdings of non-participant currencies and treasury bills in their
reserves.
Until this spring, most observers had assumed that the share of the dollar in international
reserves
would gradually fall, while that of the euro would rise, and that the world would gradually and smoothly make a transition to a multi-reserve regime.
The shares of the major reserve currencies were stable, with the dollar accounting for 62% of foreign-exchange
reserves
in 2009 and the euro 27%.
Any major changes came not from deliberate decisions by central banks to reallocate reserves, but rather from the simple arithmetic of changing exchange rates: a stronger dollar raised the dollar’s share in total global reserves, while a weaker dollar reduced it.
In fact, a sort of balance of terror obstructed any major reallocations by the big holders of
reserves.
Asian and Middle Eastern central banks with large euro
reserves
have become jittery about the euro’s political underpinnings.
And, as a provider of a reserve currency, China would not need to continue its own quest for reserves, which has been a major contributing factor to global financial instability.
Those policies led to imbalances that eroded the economy’s competitiveness and foreign reserves, pushing the country toward a balance-of-payments crisis.
Alongside rising trade and current-account surpluses, the People’s Bank of China (PBOC) maintained a policy of intervening in the foreign-exchange market to dampen appreciation, thereby amassing huge foreign exchange
reserves.
Its foreign-exchange
reserves
stopped declining in 2017.
Why, for example, did China’s decision to accumulate foreign
reserves
result in a mortgage lender in Ohio taking excessive risks?
In particular, sovereign debt in the eurozone was deemed riskless: banks had only to hold minimal
reserves
against member countries’ bonds, which the European Central Bank accepted on equal terms at its discount window.
(What are the Chinese planning to do with all their ever-growing $1.4 trillion in
reserves?
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