Foreign exchange reserves, also known as foreign exchange reserves, refer to foreign exchange assets held by central banks and other government agencies in various countries and can be converted into foreign currency at any time to meet the needs of international payment. Under normal circumstances, the sources of foreign exchange reserves are trade surplus and capital inflow, which are concentrated in domestic central banks to form foreign exchange reserves. The specific forms are: short-term government deposits abroad or other means of payment that can be cashed abroad, such as foreign securities, checks, promissory notes, foreign currency drafts of foreign banks, etc. It is mainly used to pay off the balance of payments deficit. When a large number of domestic currencies are sold, foreign exchange reserves are used to buy domestic currencies to intervene in the foreign exchange market and maintain the exchange rate of domestic currencies.
By the end of July 2020, China's foreign exchange reserves stood at $3154.4 billion, an increase of $4.210.40 billion or10.4% over the end of June. By the end of May, China's foreign exchange reserves stood at $322,654,380.8 billion, an increase of $23.6 billion or 0.74% over the end of April. By the end of 20021,12, China's foreign exchange reserves were US$ 3,250.2 billion, an increase of US$ 27.8 billion or 0.86% compared with the end of1,and an increase of about US$ 33.6 billion in 20021.
According to the latest data from the State Administration of Foreign Exchange, by the end of February 2022, China's foreign exchange reserves stood at $3.213.8 billion, a decrease of $7.8 billion or 0.24% compared with the end of June.
Related introduction
Commercial credit.
The accumulation of foreign exchange reserves will make the cost of export enterprises irreparable and bankrupt. At the same time, holding a large amount of foreign exchange reserves in the form of paper money opens the door for foreign exchange issuing countries to escape debts through inflation, which will lead to huge exchange losses of foreign exchange holding countries and bank bankruptcy.
Specific forms of foreign exchange reserves
Foreign exchange reserve ranking
Evolutionary history
It is estimated that 64% of the official world foreign exchange reserves of 1899 are mainly pounds. By 19 13, the value has dropped to 48%. As shown in the following figure, looking at the history of foreign exchange reserves, it is not difficult to find that the change base point of foreign exchange reserves is 100, and the proportion of US dollars as global foreign exchange reserves has also dropped from 72% in 1999 to 62% today. The changing trend of foreign exchange reserves will not last forever.