what is FOREX [foreign exchange] Reserves??
What is Forex Reserves. I t's under Central bank or other monetary authority that are primarily available to balance payments of the country. This is an external assets of the country. This is cash and other reserve assets. It influences the foreign exchange rate of its currency and maintain confidence in financial markets. M ost nations hold the vast majority of their foreign currency reserves in U.S Dollars followed by Euros . F oreign currency reserves are crucial to a nation's economic well-being. Without enough reserves country may be unable to pay for critical imports in critical situation; such as crude oil etc. I n 1991; we had only so forex reserves that was enough for only 10 days imports. Forex reserves have only four component. * F oreign currency Assets - Most important asset [in amount ] is foreign currency. [like US dollars ]. * G old - countrie
