From the perspective of international liquidity, the composition of international reserves includes the following two types:
(a) the composition of its own reserves.
Self-owned reserves are international reserves, mainly including a country's currency gold, foreign exchange reserves, reserve positions in the IMF and special drawing rights.
1. Currency gold.
2. Foreign exchange reserves (foreign exchange reserves are the main body of international reserves today.
3. Reserve position of the International Monetary Fund (reserve position, namely "ordinary drawing right").
4. Special drawing rights.
(2) borrowed reserve.
1. standby letter of credit.
2. Reciprocal credit and payment agreements.
3. Foreign short-term convertible currency assets of the country's commercial banks.
International reserves are also called "international reserve assets". Refers to a country's official monetary assets that can be used for international payments and can maintain its own currency exchange rate. It is mainly composed of the following parts: officially held gold; Officially held freely convertible currency; Reserve assets and special drawing rights of the international monetary fund.
After World War II, major western currencies such as the US dollar and the British pound became freely convertible currencies. At present, the dollar is still the most widely used in the balance of payments. Because the exchange rates of national currencies in the international financial market may fluctuate, the freely convertible part of international reserves is easily affected.
International reserve is one of the important issues in the post-war international monetary system reform, which not only affects the ability of countries to adjust international payments and stabilize exchange rates, but also affects the world price level and the development of international trade.