Foreign cashbackforexprofitcalculator.com">cashback forex profit calculator cashbackforexpipcalculator (ForeignExchangeReserve), also known as forexcashbackprofitcalculator exchange reserves, refers to the central banks cashback forex other government agencies in each country in order to cope with the needs of international payments, the central bank and other government agencies in the centralized control of foreign exchange assets foreign exchange reserves in the specific form of: the government in foreign short-term deposits or other can be cashed in Foreign exchange reserves are mainly used to settle the balance of payments deficit, as well as to intervene in the foreign exchange market to maintain the exchange rate of the countrys currency. The functions of foreign exchange reserves mainly include the following four aspects: first, to regulate the balance of payments, to ensure foreign payments; second, to intervene in the foreign exchange market, to stabilize the exchange rate of the local currency; third, to maintain international credibility, to improve the financing capacity When the balance of payments is in deficit, the use of foreign exchange reserves can promote the balance of payments; when the domestic macroeconomic imbalance, the total demand is greater than the total supply, foreign exchange can be used to organize imports, thereby regulating the relationship between total supply and total demand, and promote the macroeconomic Balance At the same time when the exchange rate fluctuates, foreign exchange reserves can be used to intervene in the exchange rate to make it stable Therefore, foreign exchange reserves are an indispensable means to achieve economic equilibrium and stability, especially in the case of the continuous development of economic globalization, a countrys economy is more likely to be affected by the economies of other countries, it is more so Generally speaking, the increase in foreign exchange reserves can not only enhance the ability of macro-control, but also help Maintain the credibility of the country and enterprises in the international arena, help to expand international trade, attract foreign investment, reduce the cost of financing domestic enterprises, prevent and resolve international financial risks moderate level of foreign exchange reserves depends on a variety of factors, such as import and export conditions, the size of foreign debt, the actual use of foreign capital, etc. should be based on the benefits of holding foreign exchange reserves, cost comparisons and these aspects of the situation to maintain foreign exchange reserves at a moderate level China The development of foreign exchange reserves: At the end of 1996, Chinas foreign exchange reserves exceeded 100 billion U.S. dollars for the first time, and in the following four years, the reserves rose relatively steadily since 2000, Chinas foreign exchange reserves showed a rapid growth trend to 818.872 billion U.S. dollars at the end of 2005, ranking second in the world In February 2006, Chinas foreign exchange reserves reached 853.7 billion U.S. dollars, surpassing Japan and becoming the worlds The largest holder of foreign exchange reserves to March 2010 Chinas foreign exchange reserves have reached 2,447,084 billion U.S. dollars, ranking first in the world As of the end of April 2017, Chinas foreign exchange reserves amounted to 3,029,533 billion U.S. dollars Foreign exchange reserves role in detail: 1. adjust the balance of payments, to ensure that foreign payments when the countrys import and export transactions have a relatively obvious gap or because of other factors caused by the trade 2. Intervene in the foreign exchange market, stabilize the exchange rate of the currency The exchange rate of the country is determined by the countrys supply and demand, if the countrys supply and demand disorder imagined, resulting in the development of the market exchange rate anomalies, will have an impact on the operation of the countrys monetary policy, This time, the government will use the foreign exchange reserves to buy foreign bonds to adjust the market and stabilize the exchange rate. 3. At the same time, it also helps us to obtain more international competitive advantages. 4. enhance the comprehensive national strength and the ability to resist risks foreign exchange reserves are also the assets of the central bank, foreign exchange reserves, on behalf of the central banks assets reserves are high, in our international economic affairs will also have more financial support. If a financial crisis occurs, more foreign exchange reserves can mean that you have more ability to resist risks.