Category: Forex Trading

If a currency, whether fixed or floating, begins to deviate from its desired rate with a foreign currency, the central bank can buy and sell reserves as needed to restore the intended exchange rate. As many will note, it takes much more than foreign exchange and gold reserves to guarantee the wealth of the society.…

Japan possesses the second-highest level of foreign-exchange reserves, totaling around $1.3 trillion as of August 2023. While dwarfed by China’s stash, this still represents a sizable war chest that underpins the yen’s status as a major global currency. China possesses the world’s largest foreign-exchange reserves by far, totaling over $3.2 trillion as of August 2023.…