However, most countries tend to do the reverse; they tend to accumulate as much foreign exchange as possible. Why do Central Banks then defy mathematical laws and consistently incur greater costs by holding increasingly higher levels of foreign exchange reserves.
The availability of good statistics is paramount from the Bank’s perspective, as we are not only intensive users, but also significant producers. However, solving these issues is not easy or straightforward. Nonetheless, it is imperative that we explore ways of overcoming these challenges.