Reserves

Tokyo urges China to act 'responsibly' on reserves

Japanese Finance Minister Sadakazu Tanigaki said that Japan will manage its foreign-exchange reserves to help create stability rather than maximize profit and called on China and South Korea to also act "responsibly."

Asia set to boost currency attack defences

Japan, China and South Korea are set to join forces to bolster Asia's defences against currency speculators despite diplomatic tensions that had threatened to derail economic cooperation.

IMF Working Paper on international reserves

The IMF Working Paper "A fiscal price tag for international reserves" examines the (quasi-)fiscal impact of the (opportunity) cost of international reserves. The paper suggests that while most countries made money on their reserves during 1990-2001, most…

ECB report confirms reserve diversification plan

The European Central Bank confirmed in its annual report on Tuesday 26 April that it is working on significant changes to its foreign reserve management strategy that would allow diversification into different financial instruments.

UK's Brown says IMF gold sales plan 'on the table'

British finance minister Gordon Brown said on Monday 25 April that his proposal to sell the International Monetary Fund's gold to finance debt relief for poor countries was still on the British agenda in spite of opposition from the US.

Dilemma facing Southeast Asia's central banks

This article published on Thursday 21 April looks at the situation of Asian central banks. A cocktail of rising inflation, slower economic growth and "an aggressive" Federal Reserve is forcing local central banks to raise interest rates when their…

IMF gold deal unlikely says Germany

German Deputy Finance Minister Caio Koch-Weser has said he sees almost no chance a plan to sell International Monetary Fund gold to fund debt relief for the world's poorest nations would be adopted.

Bank of France reduces gold holding

Bank of France Governor Christian Noyer said in an interview that he has "no special plan to modify the composition" of the central bank's foreign-exchange reserves this year as the bank offloads gold to buy currencies.

No plan to diversify Korea reserves 'for now'

South Korea has no intention of diversifying its rising foreign reserves, as such a move could further strengthen the Korean currency against the US dollar, the Bank of Korea's chief was quoted as saying on Sunday.

History explains Indian comfort with reserve surge

This article says the trauma of the 1991 crisis, triggered by the drying up of capital flows and withdrawals by non-resident Indians, goes along way to explain why India is comfortable increasing its stockpile of reserves. "There's no faith in the…

Malaysia says reserves well-diversified

Malaysia's international reserves are well-balanced and not excessive in US dollar holdings, Bernama news agency reported, quoting Bank Negara Malaysia (BNM) Deputy Governor Ooi Sang Kuang.

Are Korea's rising foreign reserves bane or boon?

Korea's massive foreign reserves have sparked debate on the optimum level of reserves and the management of the currency supply. But according to this article, 'Are rising foreign reserves bane or boon?', the key question is not what level the central…

Bank of Korea not to alter dollar reserves- report

The Bank of Korea does not intend to alter the proportion of its foreign exchange reserves denominated in US dollars, although it will seek to maximise profit from its forex holdings by investing in a broader range of assets, the Wall Street Journal…

How foreign reserves could make China yet stronger

This article says China's burgeoning foreign exchange reserves could provide an ideal remedy if the country's financial system is too fragile to sustain high growth levels in the long term. Up to $500 billion could be put into a social reconstruction…

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