| Abstract: |
Bachelor’s thesis deals with development of accumulation of foreign exchange reserves in selected Asian countries. In the first chapter various reasons for holding reserves are described. Apart from standard operational purposes, signs of neo-mercantilist and self-insurance motives can be identified in the case of Asian countries. Subsequently, reserve holdings are compared with measures of adequacy. During the 1990’s all countries in the sample exceeded criteria suggested but during the first decade of the twenty-first century the growth of foreign exchange reserves slowed down in relative terms. In the econometric part a fixed effect model was designed. Policy analysis proved the presence of structural break after the Asian crisis in 1997. The model was used for prediction of reserves after financial crisis in 2008. Before 2008 accumulation in of reserves in examined states had common trend, however after 2008 trends in sample countries diverged. |
