Posted by R. MAK. on August 7, 2009 ·
Foreign exchange reserves (also referred to as Forex reserves) in a strict sense are only the foreign currency deposits and bonds that are held by central banks and monetary authorities. However, commonly foreign exchange and gold, SDRs and IMF reserve positions are…
Posted by R. MAK. on August 5, 2009 ·
In this article I will explain you the balance Balance of payments model and Asset market model.A nation that is facing a trade deficit will experience reduction in its foreign exchange reserves and due to this the value of its currency will…
Posted by R. MAK. on August 4, 2009 ·
A mechanism by which governments buy foreign bonds in an effort to sterilize currency is referred to as Financial Repression. There is a direct proportionality between the degree to which this process…
