scholarly journals Analysis on the Impact of the Foreign Exchange Reserves of China on Its Macro Economy

2021 ◽  
Vol 233 ◽  
pp. 01159
Author(s):  
Jiahao Zhang
Keyword(s):  
International Development ◽  
Foreign Exchange ◽  
Foreign Debt ◽  
Foreign Exchange Reserve ◽  
Foreign Exchange Reserves ◽  
Negative Effects ◽  
Rate System ◽  
Policy Suggestions ◽  
Exchange Rate System ◽  
The Impact

China has the largest foreign exchange reserve in the world, but the high foreign exchange reserve is a double-edged sword for the country. There are two kinds of analysis for this. First, China's foreign exchange reserves have far exceeded the reasonable scale, which will cause China to pay extremely high management costs. Second, China's foreign exchange reserves are considerable, but this is the objective demand of the economy. Sufficient foreign exchange reserves can make China occupy a favorable position in international development. Based on the data on China's foreign exchange reserve, foreign debt scale and GDP from 1985 to 2019, this paper analyzes the positive and negative effects of high foreign exchange reserve on China's economic development. By analyzing the current situation of China's foreign exchange, the author gives some policy suggestions: (1) appropriately reduce foreign exchange reserves; (2) promote the reform of the exchange rate system; (3) reform the foreign exchange system

scholarly journals The Demand for International Reserves: A Case Study of Pakistan

2005 ◽  
Vol 44 (4II) ◽  
pp. 939-957 ◽  
Author(s):  
Karim Khan ◽  
Eatzaz Ahmed
Keyword(s):  
Exchange Rate ◽  
Foreign Exchange ◽  
Foreign Currency ◽  
Economic Consequences ◽  
Inflation Expectations ◽  
Foreign Exchange Reserves ◽  
Rate System ◽  
High Inflation ◽  
Exchange Rate System ◽  
The Cost

Foreign exchange reserves have clear implications for exchange rate stability, financial markets, and hence, for overall economic activity. Stakeholders have different views about reserves holding. Some economists believe that foreign exchange reserves are useless and unutilised as Friedman (1953) criticised the fixed exchange rate system with the argument that it contains unutilised foreign exchange reserves. On the other hand, some economists argue that foreign exchange reserves should be there to smooth out the imbalances in balance of payments [see Kemal (2002)]. There is continuous debate about the need to hold reserves.1 The critics are worried about the cost of holding reserves. The cost of holding reserves is the investment that nations must forego in order to accumulate reserves. In contrast, the supporters of reserves holding argue that the cost of reserves holding is small compared to the economic consequences of exchange rate variations. For instance, a depreciation in the value of the currency, caused by either financial crises or others internal or external shocks, may raise a country’s costs of paying back debt denominated in foreign currency as well as its costs of imported items. Besides, it also creates high inflation expectations.

IMPACT OF FREEZING OF FCAS: THE CASE OF PAKISTAN

2012 ◽  
Vol 01 (06) ◽  
pp. 01-06
Author(s):  
Hafiz Abdur Rashid ◽  
Ali Raza ◽  
Syed Usman Izhar ◽  
Muhammad Waqas Baig
Keyword(s):  
Foreign Exchange ◽  
Foreign Investment ◽  
Banking Sector ◽  
Negative Impact ◽  
Positive Impact ◽  
Foreign Debt ◽  
Foreign Exchange Rates ◽  
International Banking ◽  
Foreign Exchange Reserves ◽  
The Impact

Foreign investment and foreign exchange reserves have ample importance for developing countries. So, there is a needed to encourage the foreign and domestic investors whose confidence was suffer by the unexpected decision of freezing of FCAs. The purpose of this study was to identify the areas that were affected after the decision of freezing of FCAs. Moreover, the impact of freezing decision on economy of Pakistan also indicated. More sophisticated impact on banking sector, balance of payment, foreign exchange reserves, foreign debt, and foreign investment. Study found the negative impact of freezing decision of FCAs on foreign banking and positive impact on domestic banking but Pakistan banking sector was disconnected from the international banking; insatiability in balance of payment was increased; the foreign investment and exports was reduced. Resultantly, foreign exchange reserves were reduced and foreign exchange rates was increased. Therefore, it is suggested to increase the confidence of foreign investors in order to increase the foreign investment and foreign exchange reserves. Discussion of conclusions and recommendations were also provided.

Exchange Rate and Industry-Level Energy Import

2021 ◽  
pp. 71-86
Author(s):  
Abdul Sahib ◽  
Sergey Prosekov
Keyword(s):  
Exchange Rate ◽  
Supply And Demand ◽  
Exchange Rate Volatility ◽  
Trade Flows ◽  
Level Energy ◽  
Rate System ◽  
Domestic Prices ◽  
Floating Exchange Rate ◽  
Exchange Rate System ◽  
The Impact

After the Bretton Woods exchange rate system in 1973, the free-floating exchange rate, the rate determined by the forces of supply and demand, began, which developed an interest in the area of many researchers to investigate, theoretically and empirically, the impact of exchange rate volatility on the world trade flows. There are two channels, direct and indirect, through which the change in exchange rate affects domestic prices. Under the direct channel, a fall in exchange rate leads to increase in imports as well as increases the prices of inputs in domestic currency. Secondly, under the indirect channel, a decline in the exchange rate triggers the availability of domestic goods to foreign buyers at a cheaper rate, and the demand for domestic products increased. Thus, the change in exchange rate affects trade flows either positively or negatively.

Western Europe and the collapse of Bretton Woods

2019 ◽  
Vol 74 (2) ◽  
pp. 282-300
Author(s):  
Michael De Groot
Keyword(s):  
United States ◽  
Western Europe ◽  
Domestic Politics ◽  
The United States ◽  
Rate System ◽  
Bretton Woods ◽  
The Us ◽  
Exchange Rate System ◽  
The 1960S ◽  
The Impact

This article contends that Western Europe played a crucial and overlooked role in the collapse of Bretton Woods. Most scholars highlight the role of the United States, focusing on the impact of US balance of payments deficits, Washington’s inability to manage inflation, the weakness of the US dollar, and American domestic politics. Drawing on archival research in Britain, Germany, the Netherlands, and the United States, this article argues that Western European decisions to float their currencies at various points from 1969 to 1973 undermined the fixed exchange rate system. The British, Dutch, and West Germans opted to float their currencies as a means of protecting against imported inflation or protecting their reserve assets, but each float reinforced speculators’ expectations that governments would break from their fixed parities. The acceleration of financial globalization and the expansion of the Euromarkets in the 1960s made Bretton Woods increasingly difficult to defend.

scholarly journals Social Vulnerability, Gender and Disasters. The Case of Haiti in 2010

2020 ◽  
Vol 12 (9) ◽  
pp. 3574 ◽  
Author(s):  
Mar Llorente-Marrón ◽  
Montserrat Díaz-Fernández ◽  
Paz Méndez-Rodríguez ◽  
Rosario González Arias
Keyword(s):  
Natural Disasters ◽  
International Development ◽  
Social Vulnerability ◽  
Negative Impact ◽  
Research Work ◽  
The United States ◽  
Negative Effects ◽  
Unequal Distribution ◽  
And Gender ◽  
The Impact

The study of vulnerability constitutes a central axis in research work on sustainability. Social vulnerability (SV) analyzes differences in human capacity to prepare, respond and recover from the impact of a natural hazard. Although disasters threaten all the people who suffer from them, they do not affect all members of society in the same way. Social and economic inequalities make certain groups more vulnerable. Factors such as age, sex, social class and ethnic identity increase vulnerability to a natural disaster. Ten years after the earthquake in Haiti in 2010, this work deepens the relationship between natural disasters, SV and gender, exploring the unequal distribution of the SV in the face of a seismic risk. The source of statistical information has been obtained from the Demographic and Health Survey (DHS), developed by the United States Agency for International Development (USAID). Multicriteria decision techniques (TOPSIS) and the differences in differences (DID) technique are used to analyze variations in gender inequality in SV as a result of the catastrophic event. The results obtained reinforce the idea of the negative impact of the disaster on the SV. Additionally, an intensification of the negative effects is observed when the household is headed by a woman, increasing the gap in SV between households headed by women and the rest of the households. The conclusions obtained show additional evidence of the negative effects caused by natural disasters on women, and important implications for disaster risk management are derived that should not be ignored.

scholarly journals Prediksi Utang Luar Negeri Indonesia dengan Menganalisis Cadangan Devisa terhadap Nilai Ekspor Indonesia Periode Tahun 2003 - 2016

2019 ◽  
Vol 30 (1) ◽  
pp. 29
Author(s):  
R Rudi Alhempi ◽  
Dodi Irawan Siregar
Keyword(s):  
Regression Analysis ◽  
Linear Regression ◽  
Natural Resources ◽  
Multiple Linear Regression ◽  
Foreign Exchange ◽  
Linear Regression Analysis ◽  
Foreign Debt ◽  
Multiple Linear Regression Analysis ◽  
Foreign Exchange Reserves ◽  
Private Debt

Indonesia's foreign debt has increased dramatically in the last decade both government and private debt, and has taken up a portion of Indonesia's state budget (APBN). The amount of principal payments and debt interest is almost double the Indonesian development budget. For this reason, an effort is needed to pay it off, that is, every country needs foreign exchange reserves as a means of foreign payment, export activities will increase the country's foreign exchange reserves, which in turn can strengthen economic fundamentals. One of the government's efforts to obtain foreign exchange from abroad is by making loans to other countries (foreign debt) and exporting the results of natural resources and non-natural resources abroad. From the results of this foreign exchange can be used to increase state development funds. This study uses multiple linear regression analysis. The results of this study indicate that: Multiple linear regression analysis can be used to predict Indonesia's foreign debt by analyzing foreign exchange reserves against Indonesia's export value; There is a large (significant) partial effect between foreign exchange reserves and foreign debt; There is no significant (partial) significant effect between the value of exports on foreign debt.

scholarly journals Pengaruh ekspor, utang luar negeri, neraca transaksi berjalan dan neraca transaksi modal terhadap cadangan devisa di Indonesia

2020 ◽  
Vol 8 (1) ◽  
pp. 43-54
Author(s):  
Graselita Aritonang ◽  
Amril Amril ◽  
Zulgani Zulgani
Keyword(s):  
Foreign Exchange ◽  
Current Account ◽  
Descriptive Analysis ◽  
Foreign Debt ◽  
Multiple Regression Model ◽  
Least Square ◽  
Coefficient Of Determination ◽  
Current Account Balance ◽  
Capital Account ◽  
Foreign Exchange Reserves

The purpose of this study is to (1) see the description of Indonesia's foreign exchange reserves, exports, foreign debt, current account balance, and capital account balance for the period 1998-2017. (2) analyze the effect of exports, foreign debt, current account balance, and capital account balance on Indonesia's foreign exchange reserves. The method used in this research is quantitative descriptive analysis with multiple regression model analysis using the Ordinary Least Square (OLS) method. The results of this study show that the average development of Indonesia's foreign exchange reserves is 11.87 percent, exports are 7.38 percent, foreign debt is 4.51 percent, the current account balance is 514.89 percent and the capital account balance is 66.92 percent. Based on the results of the analysis carried out by exports, foreign debt, current account balance, and capital account have a positive and significant effect on foreign exchange reserves with a coefficient of determination of 98.37 percent. Keywords: Foreign exchange, export, Foreign debt, Current account, Capital account

scholarly journals Analisis Hubungan Ekspor, Pembayaran Hutang Luar Negeri Dan Nilai Tukar Terhadap Cadangan Devisa Indonesia

2021 ◽  
Vol 10 (1) ◽  
pp. 10
Author(s):  
Fakhrurrazi Fakhrurrazi ◽  
Hijri Juliansyah
Keyword(s):  
Exchange Rates ◽  
Foreign Exchange ◽  
Foreign Debt ◽  
Secondary Data ◽  
Foreign Exchange Reserves ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Long Run ◽  
The Relationship ◽  
Debt Payment

This study aims to determine the relationship between exports, foreign debt payments, and the exchange rates on the foreign exchange reserves of Indonesia in 1988-2019. This study uses secondary data for 31 years and uses the Autoregressive Distributed Lag (ARDL) analysis method to analyze the data. The results of this study indicate that all variables have no relationship between variables, only on the foreign exchange reserves to exports. In short-term testing, the export does not have a significant effect on foreign exchange reserves, and the foreign debt payment and the exchange rate have a significant effect on foreign exchange reserves. However, in the long run, all variables do not have a significant effect on foreign exchange reserves.Keywords:Exports, Foreign Debt Payment, Exchange Rates, Foreign Exchange                    Reserves, ARDL

The impact of RMB swap agreements on foreign exchange reserve demand

2020 ◽  
Vol 52 (59) ◽  
pp. 6453-6467
Author(s):  
Linyue Li ◽  
Dongzhou Mei ◽  
Rou Li
Keyword(s):  
Foreign Exchange ◽  
Foreign Exchange Reserve ◽  
Reserve Demand ◽  
The Impact
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