Factors influencing a country s international reserves.

1.Import scale: Since the most basic role of international reserves is to make up for the balance of payments deficit.

Therefore, the larger the scale of imports, the more foreign exchange funds are occupied, and the greater the probability of deficits, and the need to maintain a larger number of international reserves. In addition, the size of imports is also a determinant of the lower limit of a country's reserves, the "current reserves".

3.Size and maturity structure of external debt: The larger the scale of external debt, the more external debt that needs to be repaid in the short term, the greater the pressure on debt and interest repayment, and the greater the need to hold more international reserves.

4.The opportunity cost of holding international reserves.

The more international reserves held, the more real resources are forfeited, and the greater the loss of profits. The opportunity cost = a country's marginal rate of return on investment.

International Reserve Asset Interest Rate - The multiplier effect of the reduction in the input of real resources due to reserves.

total profit generated.

5.The type, magnitude, and frequency of external shocks.

6.A country's choice of exchange rate regime and exchange rate policy: If a country adopts a floating exchange rate system instead of a custom exchange rate system, a target exchange rate zone system, etc., it can appropriately reduce the amount of reserves it holds.

1. Describe the factors that affect the most appropriate amount of a country's international reserves, and what level of a country's international reserves should be maintained is appropriate, and the demand for international reserves itself has the meaning of the most appropriate amount. The determination of the most appropriate amount of international reserves for a country to maintain, that is, the determination of the most appropriate amount of international reserves, needs to be analyzed from the two aspects of a country's demand for international reserves. (1) The demand for international reserves:

It refers to a certain amount of international reserve assets that a country is willing and able to obtain and hold under a given condition within a certain period of time. The main determinants are: The cost of holding international reserves.

Economic openness and external conditions. Credit and financing capacity for foreign capital. The degree of development of financial markets.

The degree of leniency of exchange controls. The choice of exchange rate regime and foreign exchange policy. The international status of the currency.

The need to cope with the impact of various factors on the balance of payments.  The supply of international reservesThe increase or decrease of a country's international reserves mainly depends on the increase or decrease of its ** reserves and foreign exchange reserves. 2. How to appropriately manage the scale of China's foreign exchange reserves?

China's international reserves are also composed of four parts: reserves, foreign exchange reserves, reserve positions in the organization and special drawing rights. The management of China's international reserves is mainly the management of ** reserves and foreign exchange reserves. The management of foreign exchange reserves is the focus of China's international reserve management.

The management of the scale of China's foreign exchange reserves should be to maintain foreign exchange reserves at a moderate level. This level is related to the demand for foreign exchange. In recent years, China's foreign exchange demand mainly comes from the following five aspects:

maintain normal import demand for foreign exchange; the need for foreign exchange to repay debts; the demand for foreign exchange for the return of FDI profits; **Intervene in the demand for foreign exchange in the foreign exchange market and other foreign exchange needs (including residents traveling abroad, studying, seeking medical treatment, etc.). If the demand for foreign exchange consumption in these five areas can be met or there is a slight surplus, the scale of foreign exchange reserves will be appropriate. The management of the monetary structure of our country's foreign exchange reserves needs to adhere to the following principles:

The first is to diversify the reserve currency to reduce the risks that may be brought about by exchange rate fluctuations; The second is to determine the proportion of individual reserve currencies according to the needs of foreign exchange payments, and adjust the currency structure at any time according to the current exchange rate changes of foreign exchange. In addition, developing countries must also take into account the need to repay their external monetary liabilities when accumulating foreign exchange. According to international experience, a country should hold foreign exchange reserves with an external debt balance of about 10%.

In addition to the above-mentioned foreign exchange needs, it is also necessary to consider the amount of foreign exchange reserves that meet special needs, such as protection against international financial risks, special policy objectives, political instability, emergencies and natural disasters. There is a lack of an internationally recognized indicator of the ratio of special needs to foreign exchange reserves. In China, it is generally determined to be 10% to 15%.

Summary. Thank you for your patience.

According to the data compiled according to the questions, the main factors that determine the appropriate level of a country's international reserves are summarized as follows.

1) The speed and scale of economic development. In general, the faster and larger the economy, the greater the demand for international reserves.

2) The degree of economic openness. The higher the degree of opening up of a country, the greater the number of foreign countries, and the more international reserves it needs. (3) Conditions and financing capacity.

**The better the conditions, the less dependent on international reserves; The stronger the financing capacity, the lower the demand for international reserves.

and 4) the opportunity cost of holding international reserves. The higher the opportunity cost of holding international reserves, the lower the size of international reserves should be.

5) The ability to control the outside world. The stronger a country's ability to control foreign trade, the lower the size of international reserves can be.

What are the main factors that determine the appropriate level of a country's international reserves?

Thank you for your patience. According to the data compiled by the question, the main factors that determine the appropriate level of a country's international reserves are summarized as follows: 1) The speed and scale of economic development. The faster and larger the economy, the greater the demand for international reserves.

2) The degree of economic openness. The higher the degree of opening up of a country, the greater the number of foreign countries, and the more international reserves it needs. (3) Conditions and financing capacity.

**The better the conditions, the less dependent on international reserves; The stronger the financing capacity, the lower the demand for international reserves. and 4) the opportunity cost of holding international reserves. The higher the opportunity cost of holding international reserves, the lower the size of international reserves should be.

5) The ability to control the outside world. The stronger the ability of a country to control foreign trade, the lower the scale of international reserves can be.

If I'm helpful to you, please give me a like, you can move your cavity with your little hands to pay attention, if you have a problem with the back, you can click on my avatar for one-on-one consultation, I wish you a happy life, thank you!

Answer, the degree of exchange controls. It is a factor that is positively correlated with the demand for reserves in a country.

Among the following factors that affect a country's international reserve demand, the factor that is positively correlated with a country's international reserve demand is ( ).

The answer is the degree of exchange control.

a Cost of holding international reserves.

b The degree to which a country's economy is open to the outside world.

c The international status of the currency.

d Extent of exchange controls.

The scale of imports and exports and the size and type of various shocks to the balance of payments are positively correlated among the factors affecting a country's demand for international reserves.

Among the following factors that affect a country's international reserve demand, the factor that is positively correlated with a country's international reserve demand is ( ).

a. The cost of holding international reserves b. The ability to enter the international financial market to raise emergency funds c. Speed of adjustment d. Scale of imports and exports e. The scale and type of various shocks to the country's virtual balance of payments.

Collapse. Answer. Parse. de

1. Facilitate the deficit in the balance of payments and adjust the temporary imbalance in the balance of payments.

2. Intervene in the foreign exchange market to stabilize the exchange rate of the national currency.

3. It is the fundamental guarantee for a country's external debt borrowing and debt repayment.

International reserves are a symbol of a country's economic status and also reflect the country's ability to participate in international economic activities.

The international reserves of IMO member countries are made up of monetary reserves**, foreign exchange reserves, special drawing rights, and reserve positions in the IMF. Since foreign exchange reserves account for more than 95 percent of non-national reserves, the management of international reserves is essentially the management of foreign exchange reserves.

Answers]: a, b, c

The International Reserve General Monetary Authority (IPP) is a freely convertible asset that is generally accepted internationally for the purpose of balancing the balance of payments, maintaining the stability of the exchange rate of the national currency, and meeting emergency needs. Its main characteristics are: (1) making up for the deficit in the balance of payments; (2) support for national currency exchange rates; (3) International credit guarantee.

A country's international reserves include a country's currency**, foreign exchange reserves, reserve positions with the IMF, and special drawing rights.

From the perspective of international solvency, the composition of international reserves includes the following two types:

1) Composition of own reserves.

Own reserves, i.e., international reserves, mainly include a country's currency**, foreign exchange reserves, reserve positions in the IMF, and special drawing rights.

1.Currency**.

2.Foreign exchange reserves (foreign exchange reserves are the main body of international reserves today.

3.In the reserve position of the ** organization (reserve position, ie"General Drawing Rights")。

4.Special Drawing Rights (SDRs).

b) Borrowing reserves.

1.Standby credit.

2.Reciprocal Credit and Payment Agreements.

3.External short-term convertible monetary assets of the country's commercial banks.

International reserves are also known as:"International Reserve Assets"。It refers to the monetary assets officially held by a country that can be used for international payments and can maintain the exchange rate of the national currency. It is mainly composed of the following parts:

Officially held**; officially held freely convertible currency; Reserve assets and special drawing rights in the International Monetary Organization**.

After the Second World War, the US dollar, the British pound and other major Western currencies became freely convertible currencies. At present, the US dollar is still the most used in the balance of payments. The freely convertible portion of international reserves is vulnerable due to the possibility of fluctuations in the exchange rates of national currencies in the international financial markets.

International reserves are one of the important issues in the reform of the post-war international monetary system, which not only affects the ability of countries to adjust their balance of payments and stabilize exchange rates, but also affects the world price level and the development of international prices.

Answer]: c International reserves refer to the general term of all internationally accepted liquid assets held by countries in order to make up for the balance of payments deficit, maintain exchange rate stability, and provoke the rubber to meet the needs of other emergency payments. Its primary use is to meet international payments.