Traditional Culture Encyclopedia - Traditional stories - What does the safety of foreign exchange reserves mean?
What does the safety of foreign exchange reserves mean?
We should choose currencies with low risk and relatively stable currency value, pay close attention to the balance of payments and economic situation of these currency issuing countries, predict the exchange rate trend, adjust the currency structure in time, and reduce the exchange rate and interest rate risks;
We should also invest in safer credit instruments, such as national bonds with high reputation or institutional bonds guaranteed by the state.
The main function of foreign exchange reserves is to intervene in the foreign exchange market and maintain the currency exchange rate, which is often used to pay off the balance of payments deficit. The main forms of reserves are short-term deposits in other countries, marketable securities, promissory notes and checks from foreign banks, etc.
Foreign exchange reserves generally follow three principles, namely liquidity, safety and profitability. Liquidity means that the reserved funds can be used for payment and cashing at any time; Security refers to reserves in banks with high reputation, countries with strong economic strength and political stability; Profitability refers to the appreciation of reserved funds on the premise of ensuring liquidity and safety.
The principles of foreign exchange reserve management are as follows:
1, maintain the currency diversification of foreign exchange reserves to spread the risk of exchange rate changes;
2. Determine the quantity and term structure of various currencies and monetary assets in the reserve according to the needs of imported goods, services and other payments.
3. When determining the form of reserve currency assets, we should not only consider the rate of return of reserve assets, but also consider liquidity, flexibility and security;
4. Pay close attention to the exchange rate changes of reserve currencies and adjust the proportion of reserve assets in different currencies in time or irregularly.
The management principle of national foreign exchange reserves can be summarized as "safety, flexibility, preservation and appreciation". The first is safety. Only under the premise of safety can there be a basis for maintaining and increasing value. However, since reserve assets are payment tools, they must be flexible if they are to be realized at any time, and both are indispensable. The security mentioned here is not only the prevention of currency exchange rate and interest rate risks, but also the prevention of liquidation, circulation and exchange risks. Therefore, in order to reduce the risk of reserve assets, when considering external payment, proactive measures should be taken to manage and operate reserves as financial assets. On the basis of maintaining the value, we should not only obtain the income of basic interest, but also strive to obtain higher investment income and realize the appreciation of reserve assets.
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