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Galerie de cartes mentales international reserves
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international reserves
This is a mind map about international reserves. International reserves refer to all internationally accepted assets held by a country's government that can be used for international payments and maintaining the country's currency exchange rate.
Modifié à 2024-01-16 16:04:51
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international reserves
Overview
international solvency
Also known as "international mobility"
The ability of a country's government to finance its international balance of payments deficit includes:
Realistic capabilities (International Reserve BPM6)
and potential capacity (maximum likelihood of borrowing from foreign countries)
significance
Reflects the overall level of intervention by a country’s monetary authorities in the foreign exchange market
source
balance of payments surplus
main
Foreign exchange purchased by the central bank during foreign exchange intervention
A country’s government’s net external borrowings
Gold purchased by central banks
SDR (accept special drawing rights paid by other countries only)
structure
own reserves
gold reserves
foreign exchange reserves
Reserve positions at the IMF
Ordinary Drawing Rights (NDR)
Assets that member countries can freely withdraw from the IMF general account
Forex section in Quata
Quata——25% foreign exchange/gold/SDR 75% local currency
The portion of local currency holdings used
Borrowings provided by some member countries to the IMF
special drawing rights
Not real money, just a unit of account
International circulation means and international reserve assets used to supplement the shortage of original reserve assets
Borrow reserves
standby credit
That is, a standby borrowing agreement signed by a member country with the IMF in the event of difficulties in the balance of payments or in response to unforeseen needs in the future balance of payments.
effect
Express determination to intervene in the market
Demonstrates enhanced intervention capabilities
mutual credit agreement
Currency swap arrangement is a swap between the local currencies of two contracting countries.
A needs foreign currency, that is, it exchanges the amount of B currency at the negotiated price, and after settling the deficit, it redeems it and pays interest.
General loan arrangement
External short-term convertible assets of domestic commercial banks
effect
Make up for the international balance of payments deficit
Adjust local currency exchange rate
Act as a credit guarantee
Prevent emergencies
Reserve currency decentralization
concept
The situation or trend of currency dispersion from a single dollar to multiple currencies
Influence
positive
Alleviating Triffin Dilemma
Promote the coordination of monetary policies across countries
Helps prevent exchange rate risks
negative
Increased the difficulty of managing the total amount and structure of reserves
Aggravating the turmoil in the international foreign exchange market
deepening the instability of the international monetary system
Conflict between North and South
The asymmetric status of North and South in the issuance and circulation of reserve currency
The status asymmetry between North and South in SDR issuance
manage
concept
International reserve management refers to a country's monetary authority determining and adjusting the scale and structure of international reserves based on the requirements of its own economic development and international balance of payments conditions within a certain period of time, so as to achieve an appropriate scale and optimal structure of reserve assets. process
Total management
Rule of thumb
40% is standard
30% early warning amount
20% is the minimum limit
That is, 25% of the quota can meet the import demand for 3 months.
30%-50%
30% is the minimum limit
100% is the minimum limit
International reserves are reserves for payment of foreign debt.
10% early warning amount
Structure management
safety
Refers to the low risk of foreign exchange reserves being stored and not easily damaged.
fluidity
Refers to the ability to quickly realize lossless realization of foreign exchange reserves whenever needed.
Profitability
Refers to the appreciation and profit of reserve assets. Under a floating exchange rate system, the reserve currency exchange rate fluctuates frequently, causing holders of reserve assets to increase their profits or suffer losses.
principle of three natures
There is a positive correlation between the safety and liquidity of reserve assets
Safety, liquidity and profitability are negatively correlated
The higher the safety and liquidity of reserve assets, the lower their profitability tends to be, such as foreign government treasury bills
Reserve assets are more profitable, but less safe and less liquid. such as eurobonds
When managing the international reserve structure of a country's monetary authority, safety and liquidity must be the first principles, followed by profitability.
formula
debt ratio
The ratio of external debt to income used to cover the debt
debt ratio
The ratio of external debt to assets, using assets to cover debts
20% of the early warning amount
debt service ratio
>1——Insolvent
<1——Judge whether it is in the danger zone
20% of the early warning amount
short term debt ratio
25% of the early warning amount