What are foreign exchange reserves? What are foreign exchange reserves?

Foreign exchange reserves, also known as foreign exchange reserves, refer to the foreign exchange assets held by ** banks and other ** institutions in various countries in order to meet the needs of international payments.

What is the use of foreign exchange reserves?

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To put it mildly, from personal travel abroad to enterprise development and procurement. Whether it is to buy a bag or an airplane or a ship, it is convenient to exchange it for US dollars first, and what is consumed is foreign exchange reserves. In general, it can maintain the stability of the RMB exchange rate and guard against financial risks.

Assets: (1) Foreign assets: foreign exchange, currency**, other foreign assets.

2) Claims against **.

Note: Mainly for **** creditor's rights.

3) Claims against other depository companies.

4) Claims against other financial companies.

5) Claims on non-financial sectors.

6) Other assets.

Liabilities: (1) Reserve currency: currency issuance, deposits of non-financial institutions, deposits of financial companies (including deposits of other depository companies and deposits of other financial companies).

Note: Currency issuance is the outflow of money from ** bank minus the inflow; Deposits of non-financial institutions refer to customer reserve deposits deposited by payment institutions with the People's Bank of China; The deposits of other depository companies are deposits of depository companies or quasi-companies that provide intermediary services such as absorbing deposits, issuing loans, and handling transfer and settlement in addition to ** banks.

2) Deposits of financial companies that are not included in the reserve currency.

3) Issuance of bonds.

Note: For example, the issuance of central bank discount bills.

4) Foreign liabilities.

5) ** Deposit.

Note: Perform ** treasury functions.

6) Own **.

7) Other liabilities.

Foreign exchange reserves, also known as foreign exchange reserves, refer to the foreign exchange assets held by ** banks and other ** institutions in various countries in order to meet the needs of international payments.

Within the territory of the People's Republic of China All foreign currencies stored in the vaults of the Foreign Exchange Administration of the People's Bank of China, which have a value**, are collectively referred to as the national foreign exchange reserves. The country's foreign exchange reserves are managed by the Ministry of Finance of the People's Republic of China.

To put it simply, it is money that is put in foreign countries, such as what the United States owes to China.

What is the use of foreign exchange reserves?

Foreign exchange reserves, also known as foreign exchange reserves, refer to the foreign exchange assets held by ** banks and other ** institutions in various countries in order to meet the needs of international payments.

What is the use of foreign exchange reserves?

Foreign exchange reserves refer to foreign freely convertible currencies and other short-term liquid financial assets held by a country's monetary authority.

Foreign exchange reserves are one of the main forms of international reserves. Before World War II, the reserve currency was dominated by the British pound, and after the war, with the rapid rise of the United States and the decline of the international status of the United Kingdom, the US dollar replaced it as the main currency of the international reserve currency. Since the 60s of the last century, due to the huge deficit of the United States' finance and foreign trade, the absolute economic advantage of the United States has gradually disappeared, and the reserves of the United States have been decreasing, making the dollar crisis occur frequently, the credit of the dollar is declining, and the composition of the reserve currency has also undergone major changes, from the unitary of the dollar to the development of multiple currency reserves.

At present, the main types of reserve currencies are the US dollar, British pound, Japanese yen, euro, etc.

Compared to **, reserve currencies have the following advantages: The cost is smaller. Reserve money is not both a commodity entity and a value entity like **, it is just a value symbol; Able to earn interest-bearing profits; Reserve currencies have a vast **, ** relatively easy to obtain; **It is possible to take advantage of changes in the reserve structure of foreign exchange to regulate the foreign exchange market.

As an international reserve currency, there are three conditions that must be met:

1 It must occupy an important position in the international monetary system and have a certain international economic power as a background.

2 It can be freely exchanged for other international reserve assets, transfer international purchasing power, and make it possible to circulate money between countries.

3 Banks** are confident in the stability of their purchasing power in the international market.

The position of foreign exchange reserves in international reserve assets is rising. According to statistics, in 1950 it accounted for the total reserves of the world, and by the end of 1994 it had risen to.

In order to meet the needs of international payments, the foreign exchange assets held by ** banks and other ** institutions in various countries are foreign exchange reserves.

The structure includes short-term deposits abroad, other means of payment that can be cashed abroad, such as foreign valuables, cheques, promissory notes, foreign currency drafts, etc. At present, the main currency of foreign exchange reserves of Western countries is the US dollar, followed by the British pound, the euro, the Japanese yen, the Swiss franc, etc.