Cryptocurrency
Soft Landing
Soft Landing
“Soft Landing” is a term commonly used in various contexts, including aviation, space exploration, and business. In each context, it refers to a controlled or gentle descent or transition to a stable state or condition. In aviation, a soft landing refers to a smooth and controlled touchdown of an aircraft during landing. Pilots aim […]
Small-Scale Asset Purchases (SSAPs)
Small-Scale Asset Purchases (SSAPs) refer to a monetary policy tool used by central banks to support the economy and maintain financial stability. This policy instrument involves central banks purchasing specific asset classes to provide liquidity. SSAPs are typically employed when central banks have exhausted the option of lowering interest rates. When interest rates cannot […]
Scarce Reserves Regime
The Scarce Reserves Regime is an economic policy that is implemented by central banks to manage and control the availability of scarce resources, particularly foreign currency reserves. This regime is typically adopted by countries that face severe balance of payments problems or have limited access to international capital markets. Under the Scarce Reserves Regime, […]
Reserves
In Forex, “Reserves” refers to a country’s foreign exchange reserves. Foreign exchange reserves are the foreign currency assets held by a country. These reserves are managed by the central bank and are typically held in the form of foreign currencies and gold. Foreign exchange reserves are used by a country to ensure economic stability, […]
Reserve Requirements
Reserve Requirements refer to the minimum amount of reserves that commercial banks are required to hold as mandated by the central bank. This policy is used to ensure the stability of the banking system, control the money supply, and influence credit expansion. The Reserve Requirements policy includes the following elements: Minimum Reserve Ratio: […]
Reserve Requirement Ratio
The Reserve Requirement Ratio (RRR) is a monetary policy tool used by central banks to regulate the amount of reserves that commercial banks are required to hold. It represents the minimum percentage of customer deposits and certain other liabilities that banks must keep as reserves at the central bank. The purpose of the reserve […]
Reserve Currency
A reserve currency, also known as a reserve currency or reserve asset, is a currency that is held in significant quantities by central banks and other major financial institutions as part of their foreign exchange reserves. It is used for international transactions, investments, and as a store of value. The primary function of a […]
Repo Market
The Repo Market, short for repurchase agreement market, is a financial market where repo transactions are conducted. A repo transaction is a form of borrowing and lending agreement. In a repo transaction, one party (typically a bank or financial institution) sells a security to another party (the repo buyer) with an agreement to repurchase […]
Repo (RP)
A Repurchase Agreement, commonly known as a Repo or RP, is a financial transaction based on the sale of a security (typically government bonds or treasury bills) with a commitment to repurchase it at a later date. In simple terms, it can be thought of as a borrowing and lending agreement. In a repo […]
Quantitative Tightening (QT)
Quantitative Tightening (QT) refers to the process of reducing the size of a central bank’s balance sheet and decreasing the money supply in the economy. It is the opposite of Quantitative Easing (QE), where central banks buy financial assets to inject liquidity into the system. During QT, a central bank typically sells or allows […]
