The list below is mostly based on the latest available IMF data, and while most nations report in U. Eastern Europe report solely current forex us forex reserves of india of india Euros. And since all the figures below are in U.
Hong Kong and Macau report separate figures. Indian reports are released on a weekly basis with the figures being of the previous week. The Iranian government does not report the foreign exchange reserves as a matter of policy and all figures are estimates calculated by international or foreign institutes, which are occasionally endorsed by Iranian officials without disclosing the exact numbers. IMF releases the quarterly data on the currency composition of official foreign exchange reserves. Italy Archived 14 May 2016 at the Wayback Machine.
Time Series Data on International Reserves and Foreign Currency Liquidity. This section needs additional citations for verification. In a strict sense, foreign-exchange reserves should only include foreign banknotes, foreign bank deposits, foreign treasury bills, and short and long-term foreign government securities. Foreign-exchange reserves are called reserve assets in the balance of payments and are located in the capital account. Theoretically, in this case reserves are not necessary. Non-sterilization will cause an expansion or contraction in the amount of domestic currency in circulation, and hence directly affect inflation and monetary policy.
However, the opposite happened and foreign reserves present a strong upward trend. Ratios relating reserves to other external sector variables are popular among credit risk agencies and international organizations to assess the external vulnerability of a country. Reserves are used as savings for potential times of crises, especially balance of payments crises. Original fears were related to the current account, but this gradually changed to also include financial account needs. A rule usually followed by central banks is to hold the equivalency of at least three months of imports in foreign currency. The opening of a financial account of the balance of payments has been important during the last decade.
Hence, financial flows such as direct investment and portfolio investment became more important. Reserve accumulation can be an instrument to interfere with the exchange rate. 1995, the regulation of trade is a major concern for most countries throughout the world. The government, by closing the financial account, would force the private sector to buy domestic debt in the lack of better alternatives. With these resources, the government buys foreign assets. Thus, the government coordinates the savings accumulation in the form of reserves.