International liquidity, Managerial Economics

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INTERNATIONAL LIQUIDITY

International liquidity is the name given to the assets which central banks use to influence the external value of their currencies.  It can also be defined as the means available for settling international indebtedness.  There are five main types of international liquidity:

  • Gold
  • Convertible national currencies
  • Borrowing facilities
  • International reserve assets
  • Currency swaps

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