Management of Foreign Exchange Reserves of the European Central Bank

The aim of the article is to analyze the foreign exchange reserves of the European Central Bank and the methods of their modern management. As a result of the study, it was proven that when implementing foreign reserve management policy, the European Central Bank and national central banks should pursue the objectives of the current monetary policy for future generations. Foreign exchange reserves are a special good that only the current generation and the current government cannot use. The character of the article implies different research methods: analysis of the sources of law, legal dogmatic, comparative dogmatic method. The analysis carried out as part of the study indicates that management of foreign exchange reserves of ECB has an impact on intergenerational justice.

Foreign Reserves of the Central Bank of Iraq and its Influence on Foreign Investment Flows (Applied Research in the Period 2004 - 2019)

The importance of research results from its analysis of a major economic variable, which is foreign investment in an unstable environment that has not been witnessed by any country in the world. And because the research is applied, it has used real data on the work of the Central Bank of Iraq. Therefore, the results they will obtain are concrete results, And the problem of research may therefore be summarized by the following question: Has the Central Bank of Iraq been able to contribute to attracting foreign investment via its foreign reserves?. To prove the main premise of the research, “there is a significant statistical relationship between the Central Bank of Iraq's foreign exchange reserves and foreign investment” the standard quantitative approach has been applied, and the research reached several conclusions, The relationship between the Iraqi Central Bank's foreign assets and foreign investment is positive, and this fits into the theoretical details of the research, which reflects the success of the goal of accumulating such reserves, especially since they increased in the period under discussion, It also reflects the success of the Central Bank of Iraq in managing these assets.

THEORETICAL ANALYSIS OF THE EVOLUTION OF MONETARY SYSTEMS OF RUSSIA IN EXTREME MILITARY-POLITICAL CIRCUMSTANCES OF THE FIRST HALF OF THE TWENTIETH CENTURY (IN CONNECTION WITH THE 80TH ANNIVERSARY OF THE BEGINNING OF THE GREAT PATRIOTIC WAR)

The author of the article, addressed to those who teach and study in higher education economic theory, the history of economic thought and the socio-economic history of Russia, proceeds from the premise that changes in the socio-economic system of the country during the period of change in the dominant technological order actualize the development of the theory of money and the study of various stages of historical evolution of the domestic monetary economy (Russian monetary systems). In this context, an analysis of those periods of this evolution in the first half of the twentieth century, when the credit ruble becomes an extraordinary resource of the «war economy», unfolds. The article also examines the peculiarities of monetary circulation during the operation of the gold standard system and during the period of gold «leaving» to the state reserve fund. The author puts forward a hypothesis according to which the changes taking place in the monetary system in connection with the demonetization of gold are the accumulation of prerequisites for the transition to a post-industrial economic system. Inclusion in the analysis of the events of the global military-political history of 1914–1917 and 1941–1945, i.e. events of the First and Second World Wars, helps to reveal the real basis on which a special type of economic relations was formed — the phenomenon of «war economy». The article identifies the key factors of instability in the twentieth century — industrial, monetary and world crises. The study of the peculiarities of the development of the crisis in peacetime and in the conditions of a «military-inflationary economy» in the works of prominent Russian economists deepens the understanding of the structural deformation of the national economy. It is shown that the «price revolution», which characterizes the explosive growth of inflation, has become a vivid manifestation of the world economic instability during the development of extreme military-political events in Russia and in the countries of Western Europe. Attention is drawn to the fact that the «price revolution» in the conjuncture theory of M.I. Tugan-Baranovsky and the works of Z.S. Katsenelenbaum was considered as a function of qualitative changes that took place in the economic system as a result of the expansion of the sphere of money circulation during the transition from natural production to industrial production. The «price revolution» manifested itself with the greatest force in the conditions of the «war economy». The destruction of the national economy was accompanied by the development of «golden» inflation, indicating a chronic commodity deficit. The author argues that the size of the accumulation of gold in 1920–1945, the emergence of large banks — custodians of the gold and foreign exchange reserves of the countries — members of the monetary unions — largely influenced the results of the competition between the three leading currencies (franc, pound and dollar), claiming to be the world leader. The conclusion is argued that the accumulation of gold and foreign exchange reserves in the conditions of the «war economy» accelerated the formation of a new monetary and financial «map» of the world in the second half of the twentieth century.

Determinants of Russia’s Sovereign Risk

This paper presents an empirical analysis of the determinants of Russia’s sovereign risk. The spreads on sovereign Russian credit default swaps (CDS) were used as a measure of risk. Based on the accuracy of out-of-sample forecasts, the factors that influence Russian CDS were selected: the implied volatility of the rouble exchange rate, the size of foreign exchange reserves relative to GDP, and the average spread on other emerging market CDS as a proxy for global factors. In turn, the CDS of emerging market countries are determined by the volatility of their currencies, the slope of the US government bond curve, and also by the increments of the dollar index.

Strengthening of the Coal-Gasification Industry: Evidence from Indonesia

The purpose of this research is to analyze Indonesia's coal-gasification industry policy. This research needs to map the undeveloped coal-gasification industry. In fact, the coal-gasification industry can increase the economic value of coal, increase local income, absorb the labor force, and reduce pollution. It also has some strategic roles in national fiscal revenue and foreign exchange reserves and is of great significance to regional development. The research methods used are quantitative and qualitative. The results of this study indicate that government needs to provide some financial incentives for the coal-gasification industries, especially for pioneer companies for having coal-gasification works, and ensure that policies taken will be able to encourage economic growth and investment in Indonesia’s coal-gasification industry. To support investment in the coal-gasification industry, it is necessary to formulate policies and rules to provide a sign for its implementation.

Pengaruh Variabel Makro Ekonomi Terhadap Indeks Harga Saham LQ-45 Di Bursa Efek Indonesia

Bursa Efek Indonesia merupakan lembaga yang memfasilitasi perdagangan efek di Indonesia. Saham merupakan salah satu instrumen investasi yang memberikan imbal hasil yang cenderung meningkat setiap tahunnya. Penelitian ini bertujuan untuk menganalisis pengaruh variabel makro ekonomi dari suku bunga, nilai tukar, cadangan devisa, dan harga emas terhadap indeks harga saham LQ-45 di Bursa Efek Indonesia. Metode penelitian yang digunakan adalah metode penelitian kuantitatif dengan teknik analisis regresi linear berganda. Hasil penelitian menunjukkan bahwa secara parsial suku bunga memiliki pengaruh yang negatif signifikan terhadap indeks harga saham LQ-45. Nilai tukar memberikan pengaruh positif serta signifikan terhadap indeks harga saham LQ-45. Cadangan devisa berpengaruh positif signifikan terhadap indeks harga saham LQ-45. Sedangkan harga emas memberikan pengaruh yang negatif namun tidak signifikan terhadap indeks harga saham LQ-45. Hasil pengujian secara simultan, menemukan bahwa suku bunga, nilai tukar, cadangan devisa, dan harga emas berpengaruh signifikan terhadap indeks harga saham LQ-45.The Indonesia Stock Exchange is an institution that fasilitates securities trading in Indonesia. Stocks are an investment instrument that provides returns Which tend to increase every year. This study aims to analyze the effect of macroeconomic variables from interest rates, exchange rates, foreign exchange reserves, and gold prices on the LQ-45 stock price index on the Indonesia Stock Exchange. Quantitative research methods aplied with multiple linear regression analysis techniques. The results showed that partially interest retes have a significant negative effect on the LQ-45 stock price index. The exchange rate has a positive and significant impact on the of LQ-45 stock price index. Foreign exchange reserves have a significant positive effect on the LQ-45 stock price index. Meanwhile, the price of gold has a negative but insignificant effect on the LQ-45 stock price index. The simultaneous test results found that interest rates, exchange rate, foreign exchange, and gold price have a significant effect on the LQ-45 stock price index.

The influence of imports, foreign exchange reserves, external debt, and interest rates on the currency exchange rates against the United States Dollar in Southeast Asia Countries

This study aims to analyze the effect of imports, foreign exchange reserves, foreign debt, and interest rates on the currency exchange rates against the United States Dollar in Southeast Asia countries. The study results found that from 2010 to 2017, the currency exchange rates against the United States Dollar in Southeast Asian countries tended to weaken (depreciate). The highest growth in the exchange rate against the United States dollar was in Indonesia, while the lowest was in Singapore. Foreign exchange reserves negatively affect foreign debt, and imports positively affect countries' exchange rates in the Southeast Asia region against the United States dollar. On the other hand, interest rates do not show a significant effect.

Ethiopia’s conflict clouds the economic outlook

Significance Both are desperately needed, as G20 debt service relief will soon expire, and as the conflict in northern Ethiopia increasingly strains the economy and the government’s finances. Impacts A new IMF programme should provide some relief to chronically low foreign exchange reserves. Inflation will continue to rise in the short term but should stabilise somewhat in 2022. The birr will continue to depreciate gradually in line with IMF recommendations.

Nigeria Eurobonds will ease short-term budget pressure

Significance This comes a month after the National Assembly approved an external borrowing plan of USD6.2bn in August. Also, the IMF has approved the allocation of USD3.35bn in Special Drawing Rights (SDRs) to boost Nigeria’s foreign reserves. Combined, these have provided a modest boost to Nigeria’s faltering foreign-exchange reserves. Impacts The proceeds from the Eurobonds sale will form a significant part of funding the 2022 budget. The Eurobonds and SDR allocation, by boosting reserves, could help narrow the gap between formal and informal exchange rates. There will likely be another Eurobond sale in 2022 as well as more multilateral and bilateral loans. Nigeria’s weak tax collection infrastructure will not generate substantially improved revenues from expected growth.

PENGARUH INFLASI, JUB, SBI, SERTA CADANGAN DEVISA TERHADAP NILAI TUKAR RUPIAH TAHUN 2017-2020

Indonesia's economy refers to an open economy. In conducting international trade, countries must compare their currencies with currencies belonging to other countries. Where, the United States currency, namely the dollar, is still the standard of world exchange rates and is used in international transactions. The effect of fluctuations in the exchange rate of the rupiah with the dollar is the occurrence of depreciation or appreciation which will affect Indonesia's economic activities. The purpose of this study is to determine the effect of inflation, the money supply (M2), the SBI interest rate, and foreign exchange reserves on the rupiah exchange rate in the short and long term. The variables that are thought to be able to influence changes in the rupiah exchange rate are the inflation rate, the money supply (M2), the SBI interest rate, and foreign exchange reserves. This research was conducted during January 2017 to December 2020, using the Error Correction Model (ECM). The result is a long-term and short-term relationship. In the short term, foreign exchange reserves and the money supply (M2) significantly affect the exchange rate. Meanwhile, in the long term, the SBI interest rate, money supply (M2), and foreign exchange reserves significantly affect the exchange rate.