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Iceland has accumulated external foreign currency assets and exposure of nearly 800% of its GDP.
But given that India's foreign currency assets have at best been stable at around $260 billionn, there are limits on such intervention.
Further, one can surmise that foreign direct investments and other inflows have not quite made up for the trade deficit, as evidenced by a decline in the country's foreign currency assets by $3.1 billion in the last week of May.
Their goal is to strike a deal that will allow foreign creditors to access more than £9bn of foreign currency assets tied up with the three banks' administrators and barred from exiting Iceland.
Philip Lowe, the deputy governor of the central bank, the Reserve Bank of Australia, said the bank intended to hold about 5 percent of its foreign currency assets in China and had already gained approval from its Chinese counterpart, the People's Bank of China.
As the Swiss economy exits the liquidity trap, sight deposits are likely to substantially decrease (as the nominal interest rate on other assets increases) and the SNB would need to sell its existing foreign currency assets.
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That transaction creates a foreign currency asset equivalent to the size of the remittance, which can be used as collateral for borrowing cheaply and over the long term in overseas capital markets.
The Bank's foreign-currency assets earn far less than the yield on Indian government debt.
In the immediate aftermath of the crisis in Darfur, in 2006, BNP's Swiss branch held around half of Sudan's foreign-currency assets.
That partly reflects the problems emerging-market banks face in shifting excess funds into foreign-currency assets, or among subsidiaries in different countries.
But the fact is that to a large extent the stock and portfolio of China's foreign-currency assets are formed passively, particularly the 70% share in central-bank reserves.China needs to import more advanced technology and equipment from abroad, bring in more talent and experience and co-operate in transnational R&D.
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foreign equity assets
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foreign currency loans
foreign currency withdrawals
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foreign currency Surcharges
foreign currency holdings
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com