use foreign exchange reserves. First, countries use their foreign exchange reserves to keep the value of their currencies at a fixed rate. Russia 418.5 Natural gas, oil. Israel 133.0 Aviation, high tech. US Economy, trade Policy sndr/Getty Images, by, kimberly Amadeo, updated October 23, 2018.
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And when reserves are plentiful, a country can even use them to wield influence on international affairs after all, most financial assets are simultaneously someone elses liability. This is partially because Japan is an export powerhouse, sending 605 billion of exports abroad every year. Saudi Arabia 509.0 Oil. Italy 136.0 (2016) Engineered products, apparel United Kingdom 135.0 (2016) Manufactured goods, chemicals. A third and critical function is to maintain liquidity in case of an economic crisis. Given email address is already subscribed, thank you! The exporters exchange them for the local currency.
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