[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-321899-105":59,"doc-detail-321899-en":131},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":124,"head_meta":126,"extra_data":128,"updated_unix":130},105,"en","should-the-united-states-hold-foreign-currency-reserves","Should the United States Hold Foreign Currency Reserves?","","Focuses on whether the United States should hold large foreign currency (foreign exchange) reserves to defend its exchange rate and manage the dollar’s value. Argues that selling reserves is often unnecessary for countries with well-developed money markets and flexible exchange rates, since open-market Treasury operations can achieve similar effects. Also examines key costs of large reserve portfolios, emphasizing uncertainty about monetary policy priorities and potential conflicts with price stability, and explains how central banks use reserves and sterilized intervention.",{"@graph":69,"@context":123},[70,84,106],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/should-the-united-states-hold-foreign-currency-reserves/321899/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/should-the-united-states-hold-foreign-currency-reserves/321899.png","ImageObject",300,407,{"name":92,"@type":93},"Theodore","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-30","2026-09-21",true,{"@type":102,"interactionType":103,"userInteractionCount":105},"InteractionCounter",{"@type":104},"ViewAction",12,{"@type":107,"mainEntity":108},"FAQPage",[109,115,119],{"name":110,"@type":111,"acceptedAnswer":112},"Why does the article discuss selling foreign exchange reserves?","Question",{"text":113,"@type":114},"It explains that selling foreign exchange reserves can reduce the supply of dollars and help resist depreciation when demand for the dollar weakens.","Answer",{"name":116,"@type":111,"acceptedAnswer":117},"What is the article’s main argument against the U.S. holding and selling foreign currency reserves?",{"text":118,"@type":114},"It argues that for countries with well-developed money markets and flexible exchange rates, foreign exchange sales are unnecessary because open-market sales of Treasury securities can accomplish the same goal.",{"name":120,"@type":111,"acceptedAnswer":121},"What costs does the article associate with holding large foreign exchange portfolios and intervening?",{"text":122,"@type":114},"It highlights uncertainty about monetary policy priorities and possible conflict with price stability that can arise from maintaining and using substantial foreign exchange reserves.","https://schema.org",{"og:url":83,"og:type":125,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":127,"canonical":83},"index,follow",{"doc_id":129,"site_id":62},321899,1790098789,{"code":4,"msg":5,"data":132},{"doc_id":129,"user_id":133,"nickname":92,"user_avatar":134,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":135,"file_id":136,"file_url":137,"file_type":138,"file_size":139,"view_count":105,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":34,"language":140,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":67,"update_tm":144,"read_time":145,"preview_page_count":4},7971461740886,"https://ap-avatar.wpscdn.com/davatar_3d24733baf745e90a7e4bdd5f77d97b2","by Gerald H.Anderson and Owen F.Humpage  \nThe Uunie Satsholds a 43 bilioportfolio o foreign exchange reserves—mostly German marks and Japanese yen一to defend against unwanted depreciationsof the dollar in the world's currency mar-kets.By selling these reserves whendemand for its currency weakens,theUnited States can reduce the supply ofdollars and thereby resist a decline in thedollar's foreign exchange price.  \nAlthough this approach can sometimesbe effective,we argue that,for the UnitedStates,it is unnecessary.This country一indeed,any nation with a well-developedmoney market—need not sell foreignexchange to reduce the supply of its cur-rency;open-market sales of Treasurysecurities can accomplish the same end.Moreover,whereas many observers wamofexchange risk,we contend that themost important costs of holding a sub-stantial foreign exchange portfolio and ofintervening in the foreign exchange mar-kets are the uncertainty about monetarypolicy priorities and the possible conflictwith price stability that can develop.Theenhanced ability to set an independentmonetary policy focused on domesticprice stability is,after all,the main reasonfor adopting flexible exchange rates.  \n## ■ Official International Reserves\n\nAll countries hold official portfolios ofintemational reserve assets to meettemporary exchange-rate,or balance-of-payments,problems.As in many coun-tries,U.S.official international reservesconsist mainly of foreign exchangeholdings.Although we typically think  \n# Should the United States HoldForeign Currency Reserves?\n\nof foreign exchange as foreign currencies,the term more accurately refers to liquidclaims on foreign govemments that earnnear-market rates of retum.In addition toits foreign exchange reserves,the UnitedStates also holds official reserves in theform of gold.Special Drawing Rights,and a reserve position in the InternationalMonetary Fund(IMF)²  \nBesides using official international re-serves,most countries can also financea defense of their exchange rates byborrowing foreign currency.³TheUnited States,for example,maintainsan extensive setof short-term creditlines(\"swap\"facilities)with many na-tions primarily for this purpose,and wehave also occasionally sold foreign-currency-denominated bonds to acquireammunition for intervention.  \nOf allthe types of intermational liquid-ity—official international reserves orborrowing facilities—central bankstend to favor foreign exchange reserves.These are available virtually instantane-ously,do not require government-to-government consultation,and,unlikeborrowing,run no risk that the lenderwill demand some type of macroeco-nomic policy concession to draw onthe credit line.  \nIn part reflecting these considerationsthe United States began acquiring for-eign exchange in the early 1980s (seefigure 1).Prior to 1978,we held only asmall amount—typically much lessthan $1 billion—with gold making up  \nAugust 1.1992  \nThe United States,like most otherindustrial nations,holds a large port-folio of foreign exchange reserves,which we acquired over the last 10years through intervention in theworld's currency markets.This Eco-nomic Commentary contends that forcountries with well-developed moneymarkets and flexible exchange rates,holding vast amounts of foreign cur-rency offers few advantages.  \nNOTE:Data are year-end figures through 1991.Dot represents May 1992.  \nSOURCE:Intemational Monetary Fund,International Financial Statistics,various issues.  \nthe lion's share of our officialinterna-tional reserves.The extraordinarygrowth in U.S.foreign exchange hold-ings occurred in 1988 and 1989 as aresult of attempts to prevent the dollarfrom appreciating further against themark and yen.By 1990,our officialintemational reserves were valued atabout $83 billion.Of this amount,$52billion,or approximately 60 percent,was foreign currency.  \nIn an effort to adjust these holdings,theFederal Reserve undertook a series ofoff-market transactions with foreignmonetary authorities last year.⁵Asaresult,U.S.foreig","cbCaijfK6CilRADH","https://ap.wps.com/l/cbCaijfK6CilRADH","pdf",1405079,"English","# Should the United States Hold Foreign Currency Reserves?\n## Official International Reserves\n## International Reserves, Central Banks, and Money\n## Money, Exchange Rates, and Intervention","[{\"question\":\"Why does the article discuss selling foreign exchange reserves?\",\"answer\":\"It explains that selling foreign exchange reserves can reduce the supply of dollars and help resist depreciation when demand for the dollar weakens.\"},{\"question\":\"What is the article’s main argument against the U.S. holding and selling foreign currency reserves?\",\"answer\":\"It argues that for countries with well-developed money markets and flexible exchange rates, foreign exchange sales are unnecessary because open-market sales of Treasury securities can accomplish the same goal.\"},{\"question\":\"What costs does the article associate with holding large foreign exchange portfolios and intervening?\",\"answer\":\"It highlights uncertainty about monetary policy priorities and possible conflict with price stability that can arise from maintaining and using substantial foreign exchange reserves.\"}]","Should the United States Hold Foreign Currency Reserves? | PDF",1789960518,18]