A general term used by a government to stabilize, balance, and pay off foreign debts.
The IMF DEFINES THE INTERNATIONAL reserves OF ITS MEMBER COUNTRIES in four categories: gold, foreign exchange, AND reserve positions OF MEMBER countries within the Fund.
The amount, type and degree of hardness and softness of a country’s international reserves are an important indicator of its international solvency and national economic strength.
Reserves are short for a country’s gold and foreign exchange reserves, which represent a country’s level of foreign bonds and wealth.
Gold and foreign exchange are important international means of payment and purchase. Countries all over the world attach great importance to increasing their own gold foreign exchange reserves in order to increase their economic strength.
The gold foreign exchange reserve business that the central bank is responsible for is helpful to stabilize the currency value, reduce the dependence on foreign debt, adjust the balance of payments flexibly, and maintain the stable development of economy and society.
There are four forms of international reserves in China: gold reserve, foreign exchange reserve, special drawing right and reserve inch.
Among them, gold, special withdrawal and IMF reserve head are relatively stable in a certain period of time, so international reserve management is mainly reflected in foreign exchange management.
Under the leadership of the People’s Bank of China, the State Administration of Foreign Exchange is directly responsible for the operation and management of China’s foreign exchange reserves in the international market and entrust some reserve funds.
In the management of foreign exchange reserves, it follows the principles of safety, liquidity and value-added, takes safety as the first requirement, and adds value on the basis of ensuring the safety and liquidity of foreign exchange funds.