Keywords: central bank, foreign exchange reserves, gold, foreign exchange intervention.


The overall aim of this research paper is to enhance the role of foreign exchange reserves and indicate possibilities of their reliable and correct accumulation. Its more specific objectives are - among others - to compare foreign exchange reserves with other types of bank reserves and to identify the main kinds of risk connected with foreign exchange reserve management, including the changes that were made in response to the last global financial crisis. Moreover, this paper defines the essential characteristic features of foreign exchange interventions and identifies their types. At the time of increasing expenses for political and social purposes, the hazard of inappropriate use of foreign exchange reserves is growing. This is accompanied by high global political risk and significant financial market volatility, as well as modern channels (e.g. social media) of attack on currency exchange rates. These factors make foreign exchange reserve management quite a difficult task and turn it into a “secret knowledge” of central banks.


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How to Cite
Zaleska, M. (2020). FOREIGN EXCHANGE RESERVES – “A SACRED THING”. Scientific Journal of Warsaw University of Life Sciences - SGGW - European Policies, Finance and Marketing, (23(72), 268-279. Retrieved from