Forex reserves denote all the foreign currency deposits and foreign currency assets held by the central bank of any country. The form of reserves can be any of the followings Foreign currency in cash form Foreign currency assets, which denote all the assets held in different foreign currencies. Gold Special Drawing Rights, which are the […]Continue Reading... No Comments.
China’s Forex reserves touched a record high of USD 3 trillion in May 2011 which is much higher than the second place ofJapan’s USD 1.2 trillion Forex reserves.India’s Forex reserves stands at around USD 300 billion. Chinacontinuously try to boost its trade activity and industrial output to deliver fastest GDP growth in the World continuously.China’s […]Continue Reading... No Comments.
Current account balance specifies the difference between the inflows and outflows of the foreign exchanges and depends on the import and export with the other countries. If import is higher than export, then it is termed as current account deficit and on the contrary it is termed as current account surplus. Countries likeChina,Taiwan,JapanandRussia, having huge […]Continue Reading... No Comments.
As we have already specified that the Central Bank uses its Forex Reserves to stabilize the exchange rate during very volatile currency movement. The exchange rate has to be kept stable within a proper range to help the import and export industry. Let us visit the same with the example ofIndiaand RBI’s role to keep […]Continue Reading... No Comments.