December 2015
Intermediate to advanced
313 pages
16h 2m
English
Content preview from International Business, 2nd Edition by Pearson
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162 International Business
Ofcial Reserves Account
The ocial reserves account refers to the total currency and metallic reserves held by ocial monetary
authorities within the country. These reserves are usually composed of the major currencies used in
international trade and financial transactions (so-called ‘hard currencies’ like the US dollar, German
mark, and Japanese yen) and gold.
The significance of ocial reserves depends generally on whether the country is operating under a
fixed exchange rate regime or a floating exchange rate system. If a country’s currency is fixed, this means
that the government of the country ocially declares that ...
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