The phrase "accumulation of foreign exchange" is correct and usable in written English.
It can be used in contexts related to finance, economics, or international trade, particularly when discussing the gathering or increase of foreign currency reserves.
Example: "The country's accumulation of foreign exchange has strengthened its position in global markets."
Alternatives: "build-up of foreign currency" or "gathering of foreign exchange reserves."
Economists and bankers say that China's extraordinary accumulation of foreign exchange reserves is largely accidental.
To stop the further accumulation of foreign exchange reserves, the most direct and effective way is to stop the PBOC's intervention in foreign exchange market and allow the renminbi to float freely.
The opposite approach could also be a problem: if each Asian country tries to prevent its own currency from rising against the dollar so as to preserve the competitiveness of its exports in American markets, then the result could be a broad weakness in Asian currencies and a rapid accumulation of foreign exchange reserves.
The shift in the composition of China's capital flows may be transitory there are indications that Beijing has recently revived accumulation of foreign exchange reserves.
However, one of the main pieces of evidence for the undervaluation of the renminbi China's rapid accumulation of foreign exchange reserves–has begun to recede, even as the trade surplus balloons.
The April release of the Treasury's semi-annual report on currency issues echoed familiar themes from years of Bush administration Treasury currency reports, lamenting China's huge current account surplus (9.6% of gross domestic product in 2008), accumulation of foreign exchange reserves and "undervalued" exchange rate.
A third and critical factor is the "global saving glut"—a phrase coined by Mr Bernanke in 2005 to describe some countries' massive accumulations of foreign exchange reserves.
In others, such as China, it appears in a faster accumulation of foreign-exchange reserves by the central bank.
Argentina's central-bank governor argues that the "accumulation of foreign-exchange reserves is a powerful instrument of self-insurance".Western governors put more stress on exchange rates.
Mr Uribe is convinced that this kind of transparent, small, predictable intervention is much more effective than the large-scale but unpredictable accumulation of foreign-exchange reserves that other emerging markets have gone for.
And pushing against appreciation enables the accumulation of foreign-exchange reserves, which can then be deployed to ease depreciation when market sentiment shifts.Of course, and as the IMF points out, a free floating regime has been associated with the lowest probability of crisis over the past generation.
