Econ

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Change of reserves:

An increase in foreign assets held by the central bank is recorded with a positive or a negative sign for the change of reserves?

  • Econ -

    good question. While I'm not positive, I believe holding foreign assets increases a bank's reserves. (It certainly increases its foreign reserves).

    check this site:
    http://www.answers.com/topic/foreign-exchange-reserves

  • Econ -

    that's what i don't get, if you increase foreign assets, it means you pay out money right? Would the reserves decrease?

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