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    BANGKO SENTRAL NG PILIPINAS Exchange Rate

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    Rodolfo Corpuz
    This document discusses the significance of gold reserves for countries. It explains that gold reserves are used to hedge against inflation, determine the value of a country's currency and imports/exports, and reduce the value of the currency used to purchase gold. Countries release data on their gold reserves quarterly on websites like tradingeconomics.com. Traders and investors pay attention to gold reserves as it impacts interest rates and confidence in a country's economy. Maintaining adequate gold reserves is important for a country's economic and political outlook.

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    © All Rights Reserved
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    BANGKO SENTRAL NG PILIPINAS Exchange Rate

    Uploaded by

    Rodolfo Corpuz
    261 views7 pages
    This document discusses the significance of gold reserves for countries. It explains that gold reserves are used to hedge against inflation, determine the value of a country's currency and imports/exports, and reduce the value of the currency used to purchase gold. Countries release data on their gold reserves quarterly on websites like tradingeconomics.com. Traders and investors pay attention to gold reserves as it impacts interest rates and confidence in a country's economy. Maintaining adequate gold reserves is important for a country's economic and political outlook.

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    BANGKO SENTRAL NG PILIPINAS exchange rate

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    This document discusses the significance of gold reserves for countries. It explains that gold reserves are used to hedge against inflation, determine the value of a country's currency and imports/exports, and reduce the value of the currency used to purchase gold. Countries release data on their gold reserves quarterly on websites like tradingeconomics.com. Traders and investors pay attention to gold reserves as it impacts interest rates and confidence in a country's economy. Maintaining adequate gold reserves is important for a country's economic and political outlook.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    261 views7 pages

    BANGKO SENTRAL NG PILIPINAS Exchange Rate

    Uploaded by

    Rodolfo Corpuz
    This document discusses the significance of gold reserves for countries. It explains that gold reserves are used to hedge against inflation, determine the value of a country's currency and imports/exports, and reduce the value of the currency used to purchase gold. Countries release data on their gold reserves quarterly on websites like tradingeconomics.com. Traders and investors pay attention to gold reserves as it impacts interest rates and confidence in a country's economy. Maintaining adequate gold reserves is important for a country's economic and political outlook.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 7

    BANGKO SENTRAL NG PILIPINAS

    FINANCIAL MARKET OPERATIONS SUB-SECTOR

    REFERENCE EXCHANGE RATE BULLETIN

    November 05, 2021

    COUNTRY UNIT SYMBO EURO U.S. PHIL. PESO


    L EQUIVALEN DOLLAR EQUIVALEN
    T EQUIVALEN T
    T

    I. CONVERTIBLE CURRENCIES WITH BANGKO SENTRAL:

    1 UNITED DOLLAR USD 0.865426 1.000000 50.5670


    STATES

    2 JAPAN YEN JPY 0.007608 0.008791 0.4445

    3 UNITED POUND GBP 1.168325 1.350000 68.2655


    KINGDOM

    4 DOLLAR HKD 0.111197 0.128488 6.4973


    HONGKONG

    5 FRANC CHF 0.948517 1.096011 55.4220


    SWITZERLAN
    D

    6 CANADA DOLLAR CAD 0.694787 0.802826 40.5965

    7 DOLLAR SGD 0.640629 0.740247 37.4321


    SINGAPORE

    8 AUSTRALIA DOLLAR AUD 0.640415 0.740000 37.4196

    9 BAHRAIN DINAR* BHD 2.296170 2.653224 134.1656

    10 KUWAIT DINAR KWD N/A N/A N/A

    11 SAUDI RIYAL SAR 0.230743 0.266624 13.4824


    ARABIA

    12 BRUNEI DOLLAR BND 0.638267 0.737518 37.2941

    13 RUPIAH IDR 0.000061 0.000070 0.0035


    INDONESIA

    14 THAILAND BAHT**** THB 0.025911 0.029940 1.5140

    15 UNITED DIRHAM AED 0.235644 0.272287 13.7687


    BANGKO SENTRAL NG PILIPINAS

    FINANCIAL MARKET OPERATIONS SUB-SECTOR

    REFERENCE EXCHANGE RATE BULLETIN

    November 05, 2021

    COUNTRY UNIT SYMBO EURO U.S. PHIL. PESO


    L EQUIVALEN DOLLAR EQUIVALEN
    T EQUIVALEN T
    T

    ARAB
    EMIRATES

    16 EURO EUR 1.000000 1.155500 58.4302


    EUROPEAN
    MONETARY
    UNION

    17 KOREA WON KRW 0.000730 0.000843 0.0426

    18 CHINA YUAN** CNY 0.135265 0.156299 7.9036

    II. OTHERS (NOT CONVERTIBLE WITH BSP)

    19 PESO ARS 0.008667 0.010015 0.5064


    ARGENTINA

    20 BRAZIL REAL BRL 0.154486 0.178508 9.0266

    21 DENMARK KRONER DKK 0.134460 0.155369 7.8565

    22 INDIA RUPEE INR 0.011622 0.013429 0.6791

    23 MALAYSIA RINGGIT MYR 0.208436 0.240848 12.1790

    24 MEXICO NEW MXN 0.042169 0.048726 2.4639


    PESO

    25 NEW DOLLAR NZD 0.614885 0.710500 35.9279


    ZEALAND

    26 NORWAY KRONER NOK 0.101181 0.116915 5.9120

    27 PAKISTAN RUPEE PKR 0.005103 0.005897 0.2982

    28 SOUTH RAND ZAR 0.056914 0.065764 3.3255


    AFRICA

    29 SWEDEN KRONER SEK 0.100876 0.116562 5.8942


    BANGKO SENTRAL NG PILIPINAS

    FINANCIAL MARKET OPERATIONS SUB-SECTOR

    REFERENCE EXCHANGE RATE BULLETIN

    November 05, 2021

    COUNTRY UNIT SYMBO EURO U.S. PHIL. PESO


    L EQUIVALEN DOLLAR EQUIVALEN
    T EQUIVALEN T
    T

    30 SYRIA POUND SYP 0.000344 0.000398 0.0201

    31 TAIWAN NT TWD 0.031048 0.035876 1.8141


    DOLLAR

    32 BOLIVAR* VEB 0.000003 0.000004 0.00


    VENEZUELA **

    The Significance Of Gold Reserve In The


    Economy of a Country
    By
     Reddy Shyam Shankar
     -
     June 9, 2019 
    8342
     
    0
    What does the gold reserve mean?

    By the end of this article, you will be able to understand why any government owns
    so much of gold reserves and how crucial it is for any country to own gold. You will
    also understand the consequences a country will have to face if they fail to carry the
    minimum amount of Gold Reserves.

    Every government tries to own a lot of gold in all possible ways. However, the
    reasons might be different. Due to the chemical composition that gold has, it makes
    it unreactive to literally any solid or any other substance for that matter. Therefore,
    it proved to be an asset for the governments and civilians for decades and ages.
    Nevertheless, the meaning of gold changed over the years, and all governments
    which were a part of central banks or treasury secretaries now own a significant
    amount of gold reserves in the form of segregated investment of foreign currencies,
    foreign governmental bonds, and precious metals.

    It is not important how much of gold is purchased and held by a government in the
    form of the reserve but how much of that gold held represents its total reserves.
    Based on how much gold reserve they are carrying, policymakers frame the
    economical and political outlook of the nation. This is the significance of Gold.
    What does the Gold Reserve of a country measure?

    1. Gold Reserves is used to hedge against inflation – The state governments


    buy large amounts of gold when the country starts to experience high
    levels of inflation. As the supply of gold is limited during inflationary times,
    the demand for gold increases. Due to the characteristics of gold, it is able
    to maintain its high value better than other forms of currency. Whenever
    investors feel that the value of the currency might decline even they start
    buying loads of gold against that currency.
    2. Gold Reserve determines imports and exports – Any currency is strongly
    connected to the value of its imports and exports from the country. When
    imports exceed exports, the value of the currency will decline, and
    likewise, the currency will appreciate when net exports are higher. Thus, a
    country that exports gold and has an excess of gold reserves will see an
    increase in the strength of its currency and gold prices rise. As a result,
    the value of total exports becomes higher.
    3. Gold Reserve determines the value of its own currency – There is a direct
    relationship between gold and local currency. If there is high demand from
    the manufacturing sector for gold needed for production, then it will cause
    the gold price to rise. The currency on the other will be slightly higher or
    around the same price. But one needs to analyze the conditions and look
    at other factors also appropriately.
    4. Gold reduces the value of that currency used to buy it – When central
    banks make many transactions in gold, it affects the demand and supply of
    the local currency and may cause inflation. This is because banks need to
    print more cash in to be able to buy gold, thereby creating an excess
    supply of fiat currency.

    A reliable source of Information on Gold Reserve with


    Frequency of release
    Every country keeps a record of this data and keeps updating this information as
    and when the central makes purchases and selling of gold reserves. This data is then
    released to the media and other business channels. There are some open-source
    economic websites which keep a watch on this news and give their own analysis for
    the numbers out and future expectation.
    The gold reserve in an economy is released on a quarterly basis as this is a
    transaction that is carried out by nations for longer terms and purchases are made
    not often. Below is a list of countries along with their gold reserves in the recent
    quarter.

    USD – https://tradingeconomics.com/united-states/gold-reserves

    JPY – https://tradingeconomics.com/japan/gold-reserves

    EUR – https://tradingeconomics.com/euro-area/gold-reserves

    GBP (Sterling) – https://tradingeconomics.com/united-kingdom/gold-reserves

    AUD – https://tradingeconomics.com/australia/gold-reserves

    CHF – https://tradingeconomics.com/switzerland/gold-reserves

    NZD – https://tradingeconomics.com/new-zealand/foreign-exchange-reserves

    What do traders care about the Gold Reserve and its impact on
    the currency?

    As we have seen how gold reserve matters for any country and actions the
    government takes to ensure that that they have enough portion of the reserve with
    them. Hence, we can surely say that more the country tries to keep gold in
    exchange for currency the higher will be the interest rates. These high-interest rates
    create confidence among foreign investors, and they feel that the economy is safe to
    make their investments. The prices of the commodities are very much dependent on
    the currency and vice versa. So gold reserves is a very important economic indicator
    when it comes to making big investment decisions.

    The Bottom Line

    Given the fact that Gold has so many uses, gold never loses its value, and its role
    shall keep changing with the economies and policies. And the relation between gold
    and banks has also been evolving from time to time. We can classify countries with
    respect to their gold reserve system into three different types. a) USA and Eurozone
    that own the most needed currencies have no way but to carry their reserves in gold
    and not much space for the desired currencies. We need to keep in mind that the
    USA is the fourth gold producer. b) Emerged economies such as the Commonwealth
    countries have a different perspective by liquidating the reserved money to be used
    for development, and other developed countries had followed their footsteps – Japan
    and Switzerland. c) Emerging economies such as Russia, China, and India adopt the
    same idea of the second group as an inevitable result to develop the currently
    stagnating economy.

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