Why has Australia reduced its foreign US currency reserve holdings since 2008? Explain your working and...

Why has Australia reduced its foreign US currency reserve holdings since 2008? Explain your working and answer in words. What is the risk of doing this given that monetary policy utilizes forex swaps more than domestic repos?

Expert Solution

Rahul Sunny answered 2 years ago

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What is the risk of reducing the foreign US currency by Australia when the monetary policy...

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