COMPARATIVE ANALYSIS OF FX AND GOLD RESERVES AMONG MAJOR ECONOMIES: A STUDY FROM Q1 2020 TO Q1 2024

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DOI:

https://doi.org/10.55829/ijmpr.v3i3.223

Keywords:

Foreign Exchange Reserves, Gold Reserves, Reserve Management Strategies, Economic Stability, and Correlation Analysis

Abstract

In order to identify fluctuations, management approaches, correlations, and trends, this research examines the foreign currency (FX) and gold reserves of China, Japan, Switzerland, the United States, and India from Q1 2020 to Q1 2024. We found notable fluctuations in Switzerland's foreign exchange reserves via analysis of quarterly data, whereas the United States gold holdings remained steady. We discovered significant variations in resource management techniques using descriptive statistics and ANOVA. We also observed high cross-national correlations, indicating common impacts and interrelated economic policies.

The results show that whereas China's changing gold holdings show a more flexible response to changes in the economy, the USA and Switzerland maintain steady gold reserves, indicating cautious financial tactics. According to the report, nations with high levels of volatility should diversify their reserve assets, adopt cautious approaches, improve international economic coordination, evaluate policies on a regular basis, and use predictive analytics to foresee changes in the economy.

This research highlights the necessity for flexible and coordinated policies to sustain economic stability in a globally linked financial system. Overall, it offers insightful information on the reserve management procedures of major countries. By maximizing reserve management, policymakers may reduce risks and seize opportunities in a changing economic landscape. This is the goal of the proposals made here.

References

Almarr, H. A. (2024). Rochester Institute of Technology. Retrieved June 12, 2024, from Comparative Analysis of International Gold Prices: The Case of the UAE and Five Major Economies the UAE and Five Major Economies: https://repository.rit.edu/cgi/viewcontent.cgi?article=12914&context=theses

Beyza OKTAY, H. Ö. (2015, October). Determinants of Gold Reserves: An Empirical Analysis for G-7 Countries. Istanbul Conference of Economics and Finance, 8-16. doi:https://www.scribd.com/document/393587078/1-s2-0-S2212567116301721-main-pdf

India, F. (2024, May 31). Forbes. Retrieved June 12, 2024, from Top 20 countries with largest gold reserves [Q1 2024]: https://www.forbesindia.com/article/explainers/gold-reserves-by-country/90127/1

Koziuk, V. (2021, June). ROLE OF GOLD IN FOREIGN EXCHANGE RESERVES OF COMMODITY EXPORTING COUNTRIES. Journal of European Economy, 20(02), 211-232. doi:10.35774/jee2021.02.211

https://www.gold.org/goldhub/data/gold-reserves-by-country

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Published

01-07-2024

How to Cite

Mahida, R. (2024). COMPARATIVE ANALYSIS OF FX AND GOLD RESERVES AMONG MAJOR ECONOMIES: A STUDY FROM Q1 2020 TO Q1 2024. International Journal of Management, Public Policy and Research, 3(3), 8–19. https://doi.org/10.55829/ijmpr.v3i3.223

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Articles