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Reserves

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…

Asian central banks' dilemma

Diversification away from dollar denominated foreign exchange reserves is a natural reaction for Asian central banks, this article says. But because of the size of their holdings, any sudden move to sell a substantial part of these holdings could cause a…

Russia's reserves hit record high

Russian central bank reserves in gold and foreign currency holdings soared to a record 134.15 bln usd in January-February 2005, up 7.7 pct, ITAR-TASS news agency quoted the bank as saying.

Ex-Fed's Wyss says Asia should diversify reserves

Asian central banks need to diversify their foreign reserves but in doing so, they should allow the local currencies to appreciate against the dollar, a former US presidential economic adviser and Federal Reserve governor said on Thursday 3 March.

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