4 thoughts on “What is the impact of the central bank's purchase and selling foreign exchange in the open market and gold on the economy”
Jane
1. The central bank's buying and selling foreign exchange will often not affect the economy. The big problem, the policy has not been adjusted, and you need to intervene directly. 3. The central bank's purchase of gold often occurs. It has no effect on the economy 4. The central bank's selling gold indicates that there is a big problem with the country's economy. Only to sell gold. In the early stages of the disintegration of the Soviet Union, the crisis in Argentina was sold in large quantities.
As the assets of the central bank, foreign exchange and gold buy gold and foreign exchange. The assets of the central bank increased, and the balance sheet was unbalanced. The central bank balanced by issuing currency (issuing currency for liabilities), resulting in the increase in market currency supply. The possibility of inflation and rising prices. It affects the economy. If it is selling, it is another situation. The central bank takes this behavior as an important means of regulating the economy.
The traders believe that the state reserves (central bank reserves); 2. Jewelry decoration (jewelry); 3. Industrial application (science and technology aerospace), etc. 2. Factors affecting the price of world gold: The exchange rate is low, which is conducive to the export of my country. my country is a manufacturing economic structure. A large number of production products need to be exported to drive economic growth. It is conducive to my country's economic development. Compared to the world. Can reduce production costs to get the required items. For some industrial transfer to reduce production costs in their own country
If the central bank makes such a decision, it will undoubtedly interfere with the foreign exchange market, which will only appear without 100,000 fires. For example, the large number of US dollars in the Japanese central bank is to prevent the yen from being too strong, which has caused serious damage to the interests of the domestic export industry.
1. The central bank's buying and selling foreign exchange will often not affect the economy. The big problem, the policy has not been adjusted, and you need to intervene directly.
3. The central bank's purchase of gold often occurs. It has no effect on the economy
4. The central bank's selling gold indicates that there is a big problem with the country's economy. Only to sell gold. In the early stages of the disintegration of the Soviet Union, the crisis in Argentina was sold in large quantities.
As the assets of the central bank, foreign exchange and gold buy gold and foreign exchange. The assets of the central bank increased, and the balance sheet was unbalanced. The central bank balanced by issuing currency (issuing currency for liabilities), resulting in the increase in market currency supply. The possibility of inflation and rising prices. It affects the economy. If it is selling, it is another situation. The central bank takes this behavior as an important means of regulating the economy.
The traders believe that the state reserves (central bank reserves); 2. Jewelry decoration (jewelry); 3. Industrial application (science and technology aerospace), etc.
2. Factors affecting the price of world gold:
The exchange rate is low, which is conducive to the export of my country. my country is a manufacturing economic structure. A large number of production products need to be exported to drive economic growth. It is conducive to my country's economic development. Compared to the world. Can reduce production costs to get the required items. For some industrial transfer to reduce production costs in their own country
If the central bank makes such a decision, it will undoubtedly interfere with the foreign exchange market, which will only appear without 100,000 fires. For example, the large number of US dollars in the Japanese central bank is to prevent the yen from being too strong, which has caused serious damage to the interests of the domestic export industry.