Page 22 - Ekonomija i Biznis_septemvri 2016.indd

ECONOMY

Goran Petrevski

The author is Associate Professor at
the Faculty of Economics, “Ss. Cyril and

Methodius”University

The more,
the better

According to the last report of reserves reaching the level of 4,000 billion
the Official Monetary and Fi- in 2014 and 3,300 billion dollars at the end
nancial Institutions Forum of 2015.
(OMFIF) from June 2016,* one
of the most obvious trends in In addition to China’s role, the dynamic
international finance in the past 15 years is of the world foreign-exchange reserves
the constant growth of the official foreign- is also determined by the behavior of the
exchange reserves in the world. As one can central banks in the other developing
notice from graph no.1, since 2000 until countries, which show great propensity to
2014 the world foreign-exchange reserves store reserves compared to the developed
increased six-fold: from approximately countries (also absolutely measured as a
2,000 billion dollars to approximately percent of the GDP). Namely, the seven
12,000 billion dollars. Thereby, as in many largest developing countries (China, India,
other fields, the main driving force in this Russia, Brazil) have much greater foreign-
area is China which in the same period exchange reserves than the group of the
enormously increased its foreign-exchange seven most developed countries, although
the two groups have a similar GDP level.

Graph 1: Foreign-exchange reserves, 2000 – 2015 (billion dollars)

22 September 2016