Why do countries keep foreign currency reserves? | Forex Factory

  • Why do countries keep foreign currency reserves?

    From weforum.org

    The economic and political crisis in Sri Lanka, which began in April 2022, has been playing out on TV screens around the world. Protests have swept the country, forcing the President to step down. The country defaulted on its debt payments in May and currently owes creditors $51 billion, according to Visual Capitalist. Inflation is running at almost 40%, caused by an increasing inability to pay for fuel, food and medicine imports. Foreign currency reserves are estimated to have dwindled to around $50 million, plummeting 99% from $7.6bn in 2019. Foreign currency or exchange reserves, otherwise known as forex reserves, ... (full story)

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TheWolf
Aug 10, 2022 2:55am
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51 Billion Dollars? I guess it doesn't matter anymore if it's 5, 15, 25, 51 or 267 Billions. Either way, they're fuc*ed. That's what happens when you are greedy and can be bought. Every person with any kind of influence should be tested first to see if he is a psychopat or not. The world is where it is, because of this "people". Too much effort from psycho's, too little from normal people.

Anyway, nice agenda you have going on WEF. Succeed or not, I wouldn't want to be you when the TIME comes and it will.

When I listen to Schwab, somehow his voice is very similar to the one "human" from the WW era. All of that enthusiasm in his speech while he is saying we will own nothing and be happy.

Gotta admit though, you are really brave to spit the facts into people's face and for people STILL not to realize what you're talking about. What kind of sorcery is that I wonder or perhaps you're right people don't deserve better than to work for you and die.

Blind before the truth, deaf amid the storm.
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buffedmage
Aug 10, 2022 2:49am
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If country Diversify its assets , like for eg, gold ...it could act like a shock absorber ...also encouraging people to use the domestic products , tight fx remittances policies ..etc...all these would help..
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TCentral
Aug 10, 2022 3:08am
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So USA can collect them if confrontations or issues.
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