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Why Do Nations Need Reserves of Foreign Exchange?
By Kofi Bofah
National foreign exchange reserves are associated with political strength.National foreign exchange reserves are associated with political strength. (Image: Foreign Currency image by Stephanie Mueller from Fotolia.com)
National treasuries build reserves of foreign exchange in order to participate within the global marketplace and transact official business. Foreign exchange reserves enable individual nations to coordinate trade policy and improve their domestic economy.
chattels: ERBIL, Kurdistan Region — The cash-strapped Iraqi government has again begun offering unsupported bonds, as it attempts to rebuild a country torn apart by conflicts since 2003 and the massive recent destruction caused by ISIS and its elimination.
Analysts monitor exchange rates to foreshadow economic trends.Analysts monitor exchange rates to foreshadow economic trends. (Image: Foreign Currency image by Stephanie Mueller from Fotolia.com)
Foreign exchange identifies the process of converting domestic currency into international banknotes at particular exchange rates. These transactions present distinct ramifications for the global economy. ...
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