As a result, all the developing countries have their foreign exchange reserves in dollar-denominated assets.
They have limited foreign exchange reserves, and they all face major impediments to growth.
Its point was to pool members' foreign-exchange reserves to help crisis-hit countries suffering liquidity crunches.
ECONOMIST: Regional economic integration has a long, long way to go
As emerging-market nations increase foreign-exchange reserves, the percentage from existing gold holdings gets smaller.
The buying is coming from emerging-market nations that are accumulating foreign-exchange reserves, Dempster reported.
FORBES: Central Banks Continue Buying Gold To Diversify Portfolios
Rising foreign-exchange reserves boost the money supply, causing higher inflation and excessive bank lending.
The government has enough foreign-exchange reserves, and there is no sign yet of capital flight.
To prop up its currency, a government can sell foreign-exchange reserves to buy that currency.
Central banks currently hold 70% of their foreign-exchange reserves in longer-term securities and 30% in deposits.
In 1997, the Asian countries exhausted their foreign-exchange reserves trying to prop their currencies up.
And please note: Foreign exchange reserves cannot, as a practical matter, be used to create domestic-currency growth.
America also borrows in the currency other countries most want to hold in their own foreign-exchange reserves.
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According to Mr Duncan, under Bretton Woods global foreign-exchange reserves grew by 55% between 1949 and 1969.
ECONOMIST: The link between exchange rates and asset markets
But ultimately the costs, in terms of increasing foreign exchange reserves and rising inflation, may force its hand.
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Now that many emerging economies have built up vast stashes of foreign-exchange reserves that role is dramatically diminished.
Hungary looks shakier than Poland, since it has smaller foreign-exchange reserves, more debt, and a tighter exchange-rate peg.
It accounts for 4% of foreign-exchange reserves, compared with 66% for the dollar and 25% for the euro.
The banks shut for four days, after a run on deposits had almost exhausted the country's foreign-exchange reserves.
So China's huge accumulation of foreign exchange reserves is stuttering to a halt.
Most have abandoned their old exchange-rate pegs, are running large current-account surpluses, and have built up ample foreign-exchange reserves.
Its foreign-exchange reserves are now four times as large as its short-term foreign debt, and it has a current-account surplus.
Against that, a new deal would keep foreign-exchange reserves high, allay lingering investor mistrust and shield Brazil from unexpected shocks.
This is why central banks around the globe have sought protection by diversifying their foreign-exchange reserves into gold bullion this year.
FORBES: Central Bank Appetite And The Monetary Case For $10,000 Gold
Worse trouble has been staved off by seven years of budget restraint, large foreign-exchange reserves and a hefty overseas investment portfolio.
By removing the need to accumulate vast foreign-exchange reserves, greater currency flexibility would also create a more stable global monetary system.
The improvement in ratings is underpinned by emerging-market governments' strong external balance-sheets (record levels of foreign-exchange reserves and falling external debt ratios).
That would be a good reason to diversify its foreign exchange reserves.
The fact that Asian currencies make up only 3% of total foreign-exchange reserves indicates how far Asia still lags in financial matters.
The government will also study using foreign exchange reserves to prepay debt.
Liquid foreign-exchange reserves would pay for little more than four weeks' imports.
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