Of what importance are foreign reserves to a country like Uganda?
- They are used for servicing of foreign debits
- They can be used for foreign investments
- They can be used for removing the balance of payments
- They can be used for importing capital goods or machinery
- It Assist the government in meeting its foreign exchange needs
- maintain a reserve for national disasters or emergencies.
- To reassure foreign investors. Holding large amounts in forex reserves projects an air of confidence, which can prevent investors moving their capital to other countries, which could cause an economic downturn
- To fund internal projects. Sometimes countries will use their currency reserves to provide cash to industries, most often infrastructure programmes.
CATEGORIES Economics
TAGS Dr. Bbosa Science
