An Analysis of Foreign Exchange Reserves in India since 2001- 2016

Should India Use Foreign Exchange Reserves for Financing Infrastructure?

The unprecedented rise in Foreign Exchange Reserves (FER) in some of the Asian countries raises a concern about their optimal size and appropriate utilization. In India too, in recent months, different ways to utilize FER, in particular, to finance infrastructure, have been debated. The Government of India intends to use a part of its FER for infrastructure financing and has announced a scheme ...

Foreign Exchange Reserves Demand Model Based on Chinese Government Utility Maximization and Analysis of Chinese Foreign Exchange Reserves

At the end of 2010 China’s foreign exchange reserve reached $2847.34 billion, the author designs the maximum government utility function when consider the China government buys a part foreign exchange if company earns, it means that the China government will increase Ren-Min-Bi Yuan. And it will cause inflation. The inflation will cause disutility to government. Finally it gets the optimal fuct...

An Empirical Study of Export and Economic Growth in India since 1960: A Co integration Analysis

Liquidity management of foreign exchange reserves in continuous time

a r t i c l e i n f o JEL classification: C1 C11 E5 F3 Keywords: Foreign exchange reserves Liquidity management Gamma process In order to cope with daily foreign currency exchange payments or trades and avoid liquidity crisis, central banks need to maintain the liquidity of foreign exchange reserves. In this paper, we develop a Foreign Exchange Reserves Liquidity Management (FERLM) model based ...

An Analysis of ‘Triangle Ordering’ in Foreign Exchange Market (Forex): Simultaneous Ordering of Three Major Currency Pairs

With considering a ‘triangle of three major currency pairs’, there is a tiny difference between multiplication of exchange rate for the first two currency pairs and the third. To discover whether this little difference can lead to a neutral arbitrage or not, I took portfolios of 35 baskets of three major currency pairs(combinations of all 7 major currencies). There are eight approaches (differe...