Talk:Foreign-exchange reserves

From Wikipedia, the free encyclopedia
Jump to: navigation, search
WikiProject Economics (Rated C-class, High-importance)
WikiProject icon This article is within the scope of WikiProject Economics, a collaborative effort to improve the coverage of Economics on Wikipedia. If you would like to participate, please visit the project page, where you can join the discussion and see a list of open tasks.
C-Class article C  This article has been rated as C-Class on the project's quality scale.
 High  This article has been rated as High-importance on the project's importance scale.
 
WikiProject Finance (Rated C-class, High-importance)
WikiProject icon This article is within the scope of WikiProject Finance, a collaborative effort to improve the coverage of articles related to Finance on Wikipedia. If you would like to participate, please visit the project page, where you can join the discussion and see a list of open tasks.
C-Class article C  This article has been rated as C-Class on the project's quality scale.
 High  This article has been rated as High-importance on the project's importance scale.
 

Inclusion of European central bank and Euro system reserves[edit]

ZBIGNIEW MAZURAK: What I want to know if the Germans have their own FC reserves or they have ceded their FC reserves to the ECB (as they are required to do so).

Sdnegel dont include euro system in the list..european central bank data is ok but still..the problem is you dont know the the difference between foreign currency reserves and foreign exchange reserves...foreign exchange reserves include foreign currency reserves,SDR's and gold reserves also..and other currency assests must not be included...in that case Eurosystem foreign exchange reserves stands out as $451 billion...European central bank foreign exchange reserves stands out as $57 billion. European Central bank reserves cannot be included in the list since it is just $57 billion.

The Eurosystem comprises the ECB and the NCBs of those countries that have adopted the euro. The Eurosystem and the ESCB will co-exist as long as there are EU Member States outside the euro area. so the Eurosystem reserves cannot be included in the reserves.praddy06

---

Actually if you look at the link I included you would see that foreign currency reserves amount to €145bn. If I had included the gold then it would amount to $451 as you said. As to why the Eurosystem should be considered as a single monetary authority... The Eurosystem, which comprises the European Central Bank and the national central banks of the Member States whose currency is the euro, is the monetary authority of the euro area. We in the Eurosystem have as our primary objective the maintenance of price stability for the common good. Acting also as a leading financial authority, we aim to safeguard financial stability and promote European financial integration. [...]. This is official information you can easily find in the webpage of any of the Eurosystem banks. Anyway, there's no need to look for information, it just doesn't make any sense to have a single currency without a centralized authority Sdnegel 21:17 UTC, 29th march 2007


---

so then you can include include eurosystem reserves as $451 billion and not as $194 billion as you have quoted..still germany reseves of $113billion is already in the list and it operates under euro...the only way is to number the list and there must be no denomination for eurosystem reserves.praddy06

--

Ups, you are correct ;) I didn't realize the table was including all the assets, not only foreign currency reserves. About Germany, it has large reserves but they are part of the Eurosystem, so it would be more correct to place the information in the table without ranking it, but again, there is a single Eurozone authority and it's not the Bundesbank, so it only has reserves on paper, in reality it can't do anything with them Sdnegel 13:00 UTC, 30th march 2007

--

Please stop modifying the rankings. I'll repeat it again. The Eurosystem owns and manages the reserves of the eurozone members.

INSERTION BY ZBIGNIEW MAZURAK: So please answer these two questions:

1) Does Germany have its own independent separate FC reserves? 2) Does the Eurozone figure include the German reserve?

If the answer to the first question is no and the answer to the second question is yes then Germany shouldn't be mentioned.

Read this please: [Statute of the ESCB and the ECB]. Just substitute ESCB for Eurosystem. The reason for the different names is that in principle all the EU member states should have joined the Euro, but some didn't, so the ESCB (which is composed of all the EU national banks independently on whether they've joined the euro or not) cannot be used to control the Eurozone, instead another institution, the Eurosystem, which is exactly equal to the ESCB but excluding those national banks which have not joined the Euro, has taken the authority. Read article 3. Sdnegel 20:40 UTC, 8th April 2007

This is taken from the ECB webpage: Basic tasks (of the ESCB) According to the Treaty establishing the European Community (Article 105.2), the basic tasks are

   * the definition and implementation of monetary policy for the euro area;
   * the conduct of foreign exchange operations;
   * the holding and management of the official foreign reserves of the euro area countries
(portfolio management).
   * the promotion of the smooth operation of payment systems.

[ECB] Sdnegel 20:48 UTC, 8th April 2007

Just in case it still was not clear ;) just found this article from today at The Economist. Who's in sixth place? Germany? nooo :P [1] April 10 2007, 15:44 UTC Sdnegel

I wouldn't call Economist as reliable source. It's very hardly reliable. PS. Are you ready to use their slightly below of $200bln data as well? Will you also include stabfund of Russia? Elk Salmon 09:56, 12 April 2007 (UTC)
Okay. I gave the original treaty article, an official ECB webpage, and The Economist article. If you don't trust the latter, you still have two other sources you can trust. And notice that figures shown in that article are just those of foreign currency reserves without including gold reserves, of which the Eurozone has a lot. And I would add again that there shouldn't be any need to give 3 different sources: if you have a single currency, you must have a single monetary authority, otherwise the system couldn't work. Sdnegel 15:28 12 April 2007 UTC

--

I just added the Euroarea's reserves in the global system. As stated by other editors there is no point in ranking Germany or France and not the Eurosystem as given that they are in a single monetary union with pooled resources the reserves are also common to the single monetary system. I changed the name of "20 largest countries" to largest systems too, naming is the least relevant issue.

Who keeps editing the article to take out the eurosystem? Could he/she please state his or her reasons to do so? Is it the naming problem?

Allocated vs. Non-Allocated Reserves[edit]

This is the categorisation employed by the IMF in its calculations of overall Foreign reserve positions. It would be helpful if we could offer a definition of what that meant here. Eusebeus 11:22, 1 December 2006 (UTC)


Increase/Decrease of Reserves[edit]

How do these government currency reserves increase/decrease?--Jerryseinfeld 22:48, 12 Feb 2005 (UTC)

Their reserve/official/national banks increase or decrease their official holdings.
Ooooh really, and how to they do that?. Burn the currency? Smoke it? No they sell their own currency more expensively when people come to buy it for foreign currency. That way the foreign currency holdings simmer down. Get it? Moron.

I figured out the answer myself and posted it here, but some bone head moron removed it, see link here. I'm obviously the only one that understand this issue. The primary reason for large reserves in East asian countries today is not to support their currency if foreignerns suddenly wants to sell yuan or tawianese dollars because of a sudden loss of confidence in assets denominated in chinese yuan or taiwanese dollars. Reserves build up as a side effect of the policy to support exports through a devalued and artificially low exchange rate. The side effect is only more expensive imports. What a bunch of moronic losers that write on this site, I hope they close this embarrasing retardation station soon.

Data suspicious[edit]

User:Elk Salmon,

Where is the data for July coming from ? In the normal course of events, July data will only be available in August. Except for China and Singapore. When it would only be available in September. Could you provide a link for verification ?

218.208.243.148 04:40, 9 July 2006 (UTC)

as of 1 July. Data is available on the sites of official central banks. Elk Salmon 07:29, 10 July 2006 (UTC)

Not that I don't appreciate your work, but can you link the data with where you found the number for these countries? I can't read Chinese and Russian at the central banks' page.

First of all please sign. 2nd - both pages are available in English. Russia as of 7th yuly - [2], ROC as of 30 june-2 july - [3]. Elk Salmon 16:38, 17 July 2006 (UTC)

It says at the "end of June" released sometime on July. July 1 = end of June. So whatever number is for the month of June. Russia you says released its data weekly not monthly, so you take care of that. I want to know how ROK release its FX data: is it monthly too? Countries such as PRC release its data quarterly (every 3 months). Heilme 01:22, 18 July 2006 (UTC)
Here [4] (in PDF file) I found data from Bank of Korea for ROK's info. Like ROC, ROK also released its data monthly - "end of June". So, the FX data should read June not July 1. Heilme 01:30, 18 July 2006 (UTC)
Data for Japan here. Also "end of June". Monthyl report. Heilme 02:09, 18 July 2006 (UTC)
30 june = 30 june to 2 july. Elk Salmon 07:42, 18 July 2006 (UTC)
what is 30 June = 30 June to 2 July? makes no common sense. 134.84.164.193 22:32, 21 July 2006 (UTC)
makes all sense. take a look at calendar. Elk Salmon 23:44, 21 July 2006 (UTC)
What's with the calendar? 30 June is Friday and so? The data reports for the end of the month of June, and so the number is for June. That's the standard way to report. For example, if you want to report the GDP of Brazil at the end of 2005, you would say Brazil's GDP in 2005 is $xxx, not Brazil's GDP in 1 January 2006. That's silly. Heilme 08:37, 22 July 2006 (UTC)
I repeat, data (except for russia) is for the end of every month. It's not conventional to report it on the first day of the following month (i.e. "1 July" for "the end of June"). Heilme 08:47, 22 July 2006 (UTC)


East Asia Summit and Asian Currency Unit[edit]

There is a comment regarding "regular" consultation at the East Asia Summit in view of establishing an Asian Currency Unit. I have not deleted this but there is no source. I do question it. There has only been two meetings of the EAS one in 2005 and in 2007, at neither of these was the ACU discussed. The ACU is a concept being developed by the Asian Development Bank and is based on the ASEAN Plus Three members not the EAS members (so no India). The current version of the table also includes Germany (who has nothing to do with EAS), Hong Kong SAR (not part of EAS although China is), Taiwan (not part of the EAS) and Russa (not part but an observer in 2005). If the statement cannot be jsutified it should be removed but as it has been in the article so long I have questioned it. --202.4.78.29 03:12, 25 January 2007 (UTC)

That statement remains unsupported and seems to be incorrect. I have deleted it. If it can be shown to be correct it should be returned. --202.4.78.29 07:50, 2 February 2007 (UTC)

POV words[edit]

You say manipulation, I say stabilisation...potehto or potahto ?

"But often, the size of reserves is passively caused by the currency policy of the central bank."

Really ? Or because Republican policy really pushed up the price of oil ? So the oil exporting nations like Russia are rapidly accumulating reserves ?

Also, its pointless for the US Treasury to blame every holder of Notes for their need to borrow 3 billion per working day. Isn't it the responsibility of the US govt to stabilise/manipulate their own currency ? Perhaps USA should also accumulate reserves, to prevent its currency from rising. Or is it out of control already ?

218.111.153.93 12:03, 9 January 2007 (UTC)

Well according to the map the US already does hold reserves, presumably largely in euros and yen? Also, this is perhaps a stupid question, but are FC reserves held in cash or just on paper?--Dub8lad1 00:36, 7 July 2007 (UTC)
What Would point for the US Reserve to hold dollars when it can print the money itself?98.165.6.225 (talk) 06:31, 16 April 2008 (UTC)

Stabfund of Russia[edit]

Well, may be it's not owned by monetary authority. It's owned by Ministry of Finances. But it is reserves and quite big reserves ($113bln as of begin of may). Why not to add as well? May be as a separate entry with no ranking...? Praddy? Elk Salmon 11:18, 3 May 2007 (UTC)

---

The Stabfund is included in the reserves. BTW, Norway's Petroleum Fund is around $300bln should it be included?

Here's the link.

http://en.wikipedia.org/wiki/Stabilization_Fund_of_the_Russian_Federation

http://en.wikipedia.org/wiki/The_Petroleum_Fund_of_Norway

18 May 2007

As far as i know stabfund of Russia is not being included in reserves. It's owned by Ministry of Finances, while reserves are owned by Central Bank. Elk Salmon 12:30, 24 May 2007 (UTC)

explain how foreign reserve accumulates[edit]

can someone or anyone please explain how foreign reserves accumulate (the processes involved) in the article. its been very ambigious like how does it accumulate if the currency is appreciating and doing well in exports. Does it collect fees every time a foreign currency transaction takes place, or it issues bonds, --Visik 05:58, 9 August 2007 (UTC)

Your wish is our command ;). Seriously, if you have comments on how readable the text is, that would be welcome.--Gregalton 12:05, 9 August 2007 (UTC)

Copyright[edit]

I removed some text that'd apparently been copied from [5]. I hate to do that, but, you know... S. Ugarte 17:22, 24 August 2007 (UTC)