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Why Foreign Exchange Reserves Are Important For A Country?
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[QUOTE="Good-Guy, post: 207706, member: 29109"] Finance is a kind of thing that is required by all the people in the world. Finance has always remained one of the most widely studied subject in the history of mankind. One of the most important aspect of finance is the foreign exchange. In the field of macroeconomics, the finance usually involves monetary policy of a country and how the government runs the economical system in the country. Whenever a budget is announced by a country, the finance minister is the one who usually takes the charge of running and providing the finance to various different departments in the country. When it comes to finance at the governmental level, the importance of foreign exchange could not be overlooked. When a country has a good amount of foreign exchange reserves, the economy of the country improves a lot. usually, the foreign exchange is improved when the balance of payment of a country improves and this could be achieved by increasing the exports of the country and decreasing imports. Obviously, imports could never be stopped at all, but a country must fight inflation by exporting more goods, as this will increase foreign exchange reserves. What are other reasons why foreign exchange is important for a country? [/QUOTE]
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Why Foreign Exchange Reserves Are Important For A Country?
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