Impact of Covid Pandemic on Foreign Exchange Reserves

Nikolova, Irena (2021) Impact of Covid Pandemic on Foreign Exchange Reserves. In: XV. International Balkan and Near Eastern Congresses Series on Economics, Business and Management, May 29-30, 2021, Plovdiv, Bulgaria.

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The foreign exchange reserves are part of the central bank tools for maintaining the stability of the national legal tender. Several issues are of great importance when analysing the foreign exchange reserves. Firstly, the structure and size of the reserves is determined by the monetary policy of the central bank. Secondly, the monetary policy is different in regards with the applied exchange rate arrangement in the country as the central bank plays a significant role in maintaining the selected exchange rate. These issues are considered when reviewing the impact of the pandemic on the foreign exchange reserves.
The aim of the paper is to review the role of the foreign exchange reserves in pandemic and to analyse the opportunities for their future implementation. The statistical methods are applied to assess the present situation compared to the pre-pandemic period, and the data is from the Bank for International Settlements and the International Monetary Fund databases. The conclusion is that the foreign exchange reserves are necessary for the central banks and governments, especially in times of crises and in pandemic. They are applied as a “buffer” for maintaining the stability of the domestic currency and the whole national financial system. Moreover, in recent years the role of the foreign exchange reserves is reviewed as an additional tool of the governments and central banks for introducing new digital currencies on the market.

Item Type:Conference or Workshop Item (Paper)
Additional Information:ISBN: 9786192033088
Uncontrolled Keywords:foreign exchange reserves, covid pandemic, currencies, central bank, exchange rate arrangements
Subjects:Economic and business Administration > Economic statistics
Economic and business Administration > Finance. Banks and banking
Economic and business Administration > World trade. International economics.
ID Code:4512
Deposited By: Irena Nikolova
Deposited On:11 Nov 2021 15:10
Last Modified:11 Nov 2021 15:10

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