India regained it's position during the time of NDA rule and the positions dropped during the Congress rule and again can see it increasing post 2015 during the BJP rule.
You could see how Taiwan survived from Asian financial crisis in 1997 by manipulating its currency with foreign exchange reserves. I think it’s a good example.
It's used to prevent the weakening of the country's currency. Say, yen is devaluing (weakening) and the government then uses the FOREX and converts it into yen and buys stuff, this prevents, or at the very least, slows down the devaluation.
This is exactly how it makes international people misunderstand that Taiwan were a country because it's got national-like flag like Hongkong and besides they are not communism territories.
It's alleged that china pegs the RMB to the USD to get a trade advantage; if you convert an average chinese's income into USD at the official 7-to-1 rate they'd probably not be able to afford the same stuff
Because this is the economic rule set by the United States after World War II, the United States has always been the most powerful country, and no other country dares to challenge
@@pranjalbivare7667 No actually the poor, is grafually getting a better life and the Middle class is getting stronger. More people in Upper class now than before, we are growing with a relative pace.
Having too big of an FX reserve is meaningless. To domestically spend the reserves, nations need to sell USD and buy local currencies. At large amounts, this appreciates the local currencies relative to the USD, causing massive deflation. China, Japan, and Switzerland have more than $1 trillion (USD) in reserves. Japan and Switzerland are already experiencing deflation. These economies also rely on exports: 17.7%, 17.5%, and 66% of GDP, respectively. So they need to maintain a relatively high currency value to support exports. They can't afford deflation. So unless a nation's currency is devaluing, having a large FX reserve is worthless.
They expended a lot of their foreign currencies? Also if previously owned assets values dropped in relation to the dollar this could probably also have an effect but considering the value of the dollar is decreasing this seems fairly unlikely.
Holding too much foreign reserve indicate that the M1 to M2 ratio is limited since the flow is outward, therefore having more foreign reserve during normal time isn’t a good thing at all
It depends. In switzerland everybody wants their currency, and thats why they keep buying foreign reserves to keep the value of their currency down. They profit enormous from negative intrest rates
Fake video😂😂😂 US do not need foreign reserve. Because foreign reserve means US dollar and US can print lots of dollar. For this US can impose sanction over any country in the world.
Sorry, but this is completely wrong. Foreign reserves means any foreign currency hold by the national bank. For example, Switzerland has most of their foreign reserves in EUR, not USD. USD is a bad choice for reserves since the USD is notorious for losing value.
@@happygimp0 The USD is more stable than the Euro... The EU uses negative interest rates which means no return on their currency investment, The Yuan has been manipulated to keep its value low to ensure labor prices remain low in China. The Yen suffers from the same negative interest rate due to heavy heavy borrowing. You know absolutely nothing about currencies
@@1SuperTempest Sorry, but that is just completely wrong. Compare EUR-USD exchange rates of the last few years, the USD lost a lot of value. Same with YEN-USD. You are correct about Yuan manipulations, but even the Yuan increased compared to the USD. But the Yuan is special because of the laws and restriction from China. It looks like you are the one that knows absolutely nothing about currencies. But do invest in the shitty dollar if you want.
Having too big of an FX reserve is meaningless. To domestically spend the reserves, nations need to sell USD and buy local currencies. At large amounts, this appreciates the local currencies relative to the USD, causing massive deflation. China, Japan, and Switzerland have more than $1 trillion (USD) in reserves. Japan and Switzerland are already experiencing deflation. These economies also rely on exports: 17.7%, 17.5%, and 66% of GDP, respectively. So they need to maintain a relatively high currency value to support exports. They can't afford deflation. So unless a nation's currency is devaluing, having a large FX reserve is worthless.
@@randomperson69000 The Majority of Taiwan people regard as Taiwanese instead of Chinese. That’s why they do not want to reunify with the mainland and be independent
@@thealpha364 Under the governance by DPP, the pride of being Taiwanese is fading away and the sorrow of being a citizen is growing. There’s no democracy in this island anymore. If you criticize the government now, it’s highly likely that the police officer will visit you soon. In fact, I am scared to be disappeared when I am typing this.
@@chhuang0310 actually on the embassy website u are chinese and Caim to be the true china. And on ur passport it says republic of China not Taiwan hahahaha western rhetoric
and you need permission to come to Taiwan. Foreigners coming to Taiwan don't need to apply visa from China government :D you can say all what you want to say but everything you say is simply a lie, bye 小粉紅 little pink
