Riccardo
Fri Nov 15 2024
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7 answers
1811
Why did China want a foreign exchange reserve?
China wanted a foreign exchange reserve for multiple reasons. Primarily, it served as a buffer to adjust the balance of payments and ensure payment capabilities. Additionally, it allowed China to intervene in foreign exchange markets, stabilizing currency exchange rates. Moreover, having a reserve helped to preserve China's international reputation and improve its financing capacity. Furthermore, it enhanced China's comprehensive national strength and provided a means to resist financial risks.
Michele
Thu Aug 29 2024
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5 answers
972
Which currency is held in a foreign exchange reserve?
Could you elaborate on which specific currency or currencies are typically held in a foreign exchange reserve? Are there any particular factors that determine which currencies are included in these reserves, and what role do they play in the global economy? Additionally, how do fluctuations in the value of these currencies impact the stability and financial health of a country's economy?
