This paper analyses the effects of the foreign exchange re-serves accumulation on the key nominal and real macroeconomicvariables (GDP, employment, prices and exchange rates) in BRICcountries (Brazil, Russia, India, China). VAR model was used toempirically examine the effect of accumulation of...

Foreign exchange reserves held by central banks rose to more than 5 trillion dollars in 2006 from 1.5 trillion a decade ago and are expected to rise further in the coming years. Sovereign wealth funds manage assets in excess of 1.5 trillion dollars, and total reserves managed jointly by central...