The pooling of foreign-exchange reserves are contingency measures aimed at containing crises such as the one roiling the eurozone, analysts told the paper.
Growth, inflation, the balance of payments and foreign exchange reserves are all expected to show the effects of lost businesses and reconstruction costs.
What would be of foremost importance in this rebalancing process would be to bring the large trade surpluses and foreign-exchange reserves down and shifting the driver of economic growth from investment and exports to domestic consumption, argues Thornton.
They also point out that the country has enough foreign-exchange reserves and cash in hand to survive until after the election, unless there is a wholesale collapse of confidence among Brazilians, leading to large-scale capital flight.
Asian banks had a huge build-up in foreign exchange reserves over the past couple of years and the reserves supplies had remained fairly constant.
FORBES: INTERVIEW: Central Buying Gold Buying Likely To Continue - WGC Official
The obvious policy response is intervention to cap the sterling rate, build up foreign-exchange reserves, and offset the monetary effects by issuing sterling debt.
But she has given her backing to the most notable pillar of Mr Menem's past economic success, Argentina's unusual monetary system which pegs the peso to the dollar, and money supply to the level of foreign-exchange reserves.
We also saw the largest amount of money pulled from emerging markets since the fourth quarter of 2008, according to UBS. For the first time in several months, the monthly change in foreign exchange reserves declined double digits.
FORBES: China PMI Suggests Boom Ahead For Mainland, Hong Kong
The published figures for the breakdown of reserves by currency omit China, even though the country accounts for a fifth of foreign-exchange reserves.
They are no longer financially dependent on the rest of the world, but have large foreign-exchange reserves no less than three-quarters of the global total.
As a result, all the developing countries have their foreign exchange reserves in dollar-denominated assets.
The government has enough foreign-exchange reserves, and there is no sign yet of capital flight.
The banks shut for four days, after a run on deposits had almost exhausted the country's foreign-exchange reserves.
At the same time emerging economies' behaviour, particularly the accumulation of massive foreign-exchange reserves, has distorted capital markets by artificially pushing down long-term interest rates.
The picture is less clear for Asian countries, which, led by China and Japan, account for about half of the world's foreign-exchange reserves and sovereign-wealth assets.
ECONOMIST: The flows are neither as big nor as scary as they once seemed
All these countries have the comfort of huge foreign-exchange reserves.
ECONOMIST: Emerging countries are not the havens some people thought
In a little-noticed comment during the weekend's meetings, Yi Gang, a deputy governor of China's central bank and head of the country's foreign-exchange reserves, said that China aimed to bring its current-account surplus below 4% of GDP within 3-5 years.
First, there are financial investments by the state, through bodies such as CIC and the State Administration of Foreign Exchange (SAFE), which looks after the country's vast foreign reserves.
ECONOMIST: Capital and companies from China are sidling into Europe
In 1997, the Asian countries exhausted their foreign-exchange reserves trying to prop their currencies up.
By removing the need to accumulate vast foreign-exchange reserves, greater currency flexibility would also create a more stable global monetary system.
The government will also study using foreign exchange reserves to prepay debt.
This would require backing the monetary base with reserves of foreign exchange.
Typically, governments hold cash reserves in their central bank as foreign exchange reserves for the purpose of stabilizing currency and management of liquidity.
CENTERFORSECURITYPOLICY: The danger of sovereign wealth funds
Given the losses they have already suffered through the pound's fall, will they step up their purchases, especially as the growth rate of global foreign-exchange reserves is slowing?
With inflation under much better control, floating exchange rates (China is a big exception) and well-stocked foreign-exchange reserves now dominate in the emerging world, providing protection against falling exports and flighty foreign investors.
This was true internationally, as central banks of developing countries parked their growing foreign exchange reserves in the US, so that the South provided net finance to the North, instead of using such resources for its own development.
The government would lose money on its huge stash of foreign-exchange reserves but that loss will occur whenever the yuan appreciates and will be bigger the longer today's system continues.
ECONOMIST: China should loosen its currency peg��and quickly
In the 1980s when Iran's foreign currency reserves dried up, licensed exchange bureaux closed down and the black market was run by the street money-changers of Tehran's Ferdowsi Street.
As emerging-market nations increase foreign-exchange reserves, the percentage from existing gold holdings gets smaller.
Rising foreign-exchange reserves boost the money supply, causing higher inflation and excessive bank lending.
应用推荐