List of countries by foreign exchange reserves

See also: List of countries by foreign exchange reserves

At the end of 2007, 63.90% of the identified official foreign exchange reserves in the world were held in United States dollars and 26.5% in euros [1].

Monetary Authorities with the largest foreign reserves in 2009.

Rank Country/Monetary Authority billion USD (end of month) 1 People's Republic of China $ 2273 (Sep 2009) 1[1] 2 Japan $ 1019 (Jun 2009)[2] - Eurozone $ 531 (Feb 2009) 3 Russia $ 429 (Oct 2009) 2 [3] 4 Taiwan $ 321.09 (Apr 2009) [4] 5 India $ 281 (Sep 2009) 2 [5] 6 South Korea $ 254 (Sep 2009)[6] 7 Hong Kong $ 233 (Aug 2009) 8 Brazil $ 233 (Oct 2009) 3[7] 9 Germany $ 184 (Sep 2009) 10 Singapore $ 182 (Sep 2009)

Note:

• Note 1: China updates its information quarterly.
• Note 2: Russia and India update their information weekly and monthly.
• Note 3: Brazil updates its information daily.

These few holders account for more than 60% of total world foreign currency reserves. The adequacy of the foreign exchange reserves is more often expressed not as an absolute level, but as a percentage of short-term foreign debt, money supply, or average monthly imports.

On July 15, 2009, the People's Bank of China announced China's foreign exchange reserve had reached $2.132 trillion by far the largest holders of foreign exchange reserves and the first time a country had surpassed the $2 trillion benchmark.

Excess reserves:

Foreign exchange reserves are important indicators of ability to repay foreign debt and for currency defense, and are used to determine credit ratings of nations, however, other government funds that are counted as liquid assets that can be applied to liabilities in times of crisis include stabilization funds, otherwise known as sovereign wealth funds. If those were included, Norway and Persian Gulf States would rank higher on these lists, and UAE's $1.3 trillion Abu Dhabi Investment Authority would be second after China. Singapore also has significant government funds including Temasek Holdings and GIC. India is also planning to create its own investment firm from its foreign exchange reserves.

Foreign exchange reserves:

Foreign exchange reserves (also called Forex reserves) in a strict sense are only the foreign currency deposits and bonds held by central banks and monetary authorities. However, the term in popular usage commonly includes foreign exchange and gold, SDRs and IMF reserve positions. This broader figure is more readily available, but it is more accurately termed official international reserves or international reserves. These are assets of the central bank held in different reserve currencies, mostly the US dollar, and to a lesser extent the euro, the UK pound, and the Japanese yen, and used to back its liabilities, e.g. the local currency issued, and the various bank reserves deposited with the central bank, by the government or financial institutions.

Forex Trading

Forex is an abbreviation of Foreign Exchange (also sometimes referred to as FX). A Forex is a place where world currencies are traded. It's a place where you can buy and sell pounds (sterling), the Euro, US Dollars, the Japanese Yen and many more of the world's currencies.

When you buy currency, you are effectively taking part in two forex trades - consisting of buying and selling a base currency and a counter currency.

People buy and sell currencies hoping to make a profit on currency movements. You make a profit when you are able to correctly determine which currency will increase in value by the end of a predetermined period. Unlike the London Stock Exchange, the Forex market is open 24 hours a day from Monday to Friday. It is based in four major world cities - Sydney in Australia, Tokyo in Japan, New York and London. Anyone over the age of 18 can trade on the Forex market, although users resident in the US are not accepted on this site.

Initially, the idea of Forex trading may sound a little daunting. However, it is much easier to understand than buying and selling shares and people with little experience in economics can be successful. It is certainly exciting and entertaining, and is filled with opportunities.

For example, in a "bear" market, all shares are falling to a certain degree. However with currencies, if one currency is falling, another is always rising. Therefore there are always opportunities where the wise can make money.

Types of Trading

Congratulations! You’ve gotten through the Pre-School and are ready to begin your first day of class. You did go through the Pre-School right? By now you’ve learned some history about the Forex, how it works, what affects the prices, blah blah blah.

We know what you’re thinking…BORING! SHOW ME HOW TO MAKE MONEY ALREADY!

Well, say no more my friend; because here is where your journey as a Forex trader begins…

This is your last chance to turn back… Take the red pill, and we take you back to where you were and you will forget all about this. You can go back to living your average life in your 9-5 job and work for someone else for the rest of your life.

OR

You can take the green pill (green for money! Yeah!) And learn how you can make money for yourself in the most active market in the world, simply by using a little brain power. Just remember, your education will never stop. Even after you graduate from BabyPips.com, you must constantly pursue as much knowledge as you can, so that you can become a true FOREX MASTER! Now pop that green pill in, wash it down with some chocolate milk, and grab your lunchbox…School of Pipsology is now in session!

Note: the green pill was made with a brainwashing serum. You will now obey everything that we tell you to do! Mwuahahaha! <–evil laugh Two Types of Trading

There are 2 basic types of analysis you can take when approaching the forex:

1. Fundamental analysis
2. Technical analysis.

There has always been a constant debate as to which analysis is better, but to tell you the truth, you need to know a little bit of both. So let’s break each one down and then come back and put them together.
Fundamental Analysis

Fundamental analysis is a way of looking at the market through economic, social and political forces that affect supply and demand. (Yada yada yada.) In other words, you look at whose economy is doing well, and whose economy sucks. The idea behind this type of analysis is that if a country’s economy is doing well, their currency will also be doing well. This is because the better a country’s economy, the more trust other countries have in that currency.

For example, the U.S. dollar has been gaining strength because the U.S. economy is gaining strength. As the economy gets better, interest rates get higher to control inflation and as a result, the value of the dollar continues to increase. In a nutshell, that is basically what fundamental analysis is.

Forex Broker Announce Lowest Forex Trading Spread Fees

October 24, 2009 -- In a significant move, CH Devisen Macht, a new forex broker in the Swiss forex trading market, is offering several new features that enable forex traders to gain more profits and perform trading more smoothly. Features such as very low transaction fees, account features and advanced forex prediction tools will enable forex traders to easily manage their account and foresee trading patters more effectively. The announcement of these features will also allow CH Devisen Macht to leapfrog ahead of its Swiss Competitors.

With the help of the newly announced features, CH Devisen Macht has been able to provide forex traders with an excellent Forex trading platform, which will help traders to maximize their trading potential. The efficient client-support means that its clients will stay a step ahead than the clients of its Swiss Competitors. The clients should benefit from the lowest possible fees and the most advanced market prediction tools. In fact the companies’ aggressive move, posits an influx of clients who presently stay with its competitors.

Full time traders will find CH Devisen Macht an invaluable part of their trading exercise. Even if clients fail to find enough time to fulfill their daily forex trading obligations, the Managed Accounts feature of this forex broker can handle their daily transactions on their behalf. The risk management features of the company are one of the best when compared to the swiss forex trading market.

The Managed Accounts feature enables busy clients to fully concentrate on their most-important tasks without worrying about their daily forex trading obligations. The advanced forex prediction tools offered by CH Devisen Macht help you to identify the currency pairs on which you can rely on in the near future. This gives you a significant advantage above other traders present in the market. With this tool, you will also be able to find out the favorable trading times in the trading market. This allows you to trade only when trading circumstances favor your trading preferences.

The advanced forex prediction tools also give you strong indications as to whether you need to focus on one or different currency pairs. This gives you the best chance to make sustained gains from forex trading. CH Devisen Macht connects its clients directly with the Swiss Foreign Exchange Marketplace. Its clients will be able to take advantage of the Swiss Foreign Exchange, which is home to the richest collection of interbank spot forex liquidity. The give up facility is also provided as part of the full Broker capability offered to its members.

Seasoned Forex Trading observers are of the opinion that CH Devisen Macht’s trading platform is among the safest and most secure trading platforms currently available. You can trade any amount of money you desire without concern as you will be able to manipulate even the finest details of your order execution. It has also provided several risk management tools, which helps you immensely in your endeavor to trade securely. The CH Devisen Macht trading platform also makes trading an effortless task as you will be able to carry out trading with just a single “click” of your mouse. It also provides 24/6 support to those clients who prefer to trade over the phone.

With the variety of new features announced by CH Devisen Macht, it promises to take forex trading to the next level. The very low transaction fees offered should encourage a much higher volume of trading. The account features will help even the busiest people to indulge in daily trading. The advanced forex prediction tools will enable traders to have a much better grasp of what can be expected to happen in the near future of the forex trading market, which is indispensable for effective trading. CH Devisen Macht has also made arrangements for fast forex trading. In addition, the risk management tools make trading a tension-free exercise.

What should a good forex system have?

• 1. Proof - when developing a system, it's important to see whether it would have worked in the past. This is a crucial step in developing a system, since if it does not work on past data, it will probably not work on future data.

• 2. Reason - a good system should have a reason behind its mechanics. Although there are some systems that have weird, yet working logic, most systems need to have a good reason for its inner workings.

• 3. Ability to work on all common market conditions - good forex trading systems need to work on most market conditions: up, down, sideways, slow days, and fast days. A system that works only in one direction or under one condition may become useless when the market conditions change, and in the forex market those conditions change rapidly.

• 4. Technical support - common scam systems used to be sold with no technical support. If the user got stuck, it was his own problem. A good trading system has a good support support system behind it to answer any question and solve any problem that may be encountered.