Rights available for the finance of international trade. Broadly speaking, if sufficient reserves

Were not available, a fall in prices and world trade could follow. Gold has lost some of its appeal as

A reserve asset in a world of comparatively low inflation. Preference is given to the holding of

Interest-bearing assets denominated in such currencies as the US dollar, the Euro, Japanese yen

And sterling.

Мировая экономика

The international liquidity performs three functions:

• It is the means of formation of liquid funds (reserves).

• It is the means of international payments (for covering a deficit of the balance of payments).

• It is the means of currency (spot) intervention.

The determinant of currency liquidity is the ratio of official gold and foreign exchange reserves

To the amount of annual visible imports.

Liquidity positions (LP) of a debtor country are characterized by the following determinant

LP = gold and foreign exchange reserves of the country / debt.

Terminological Vocabulary to Text 7.4. Try to memorize it

Foreign exchange markets — валютные рынки

Foreign bill of exchange — переводной вексель во внешнеторговых сделках

Of international standing —...международного значения (положения)

To trade at (a) discount — торговать ниже номинальной цены

Rate of interest (interest rate) — процентная ставка