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Currency reserves

5 videos
This tutorial delves into how and why countries (usually their central banks) would want to keep other countries' currency in reserve. It then goes into why this sometime leaves the reserve-holding country open to a speculative attack (this is seriously high drama).

Accumulating foreign currency reserves

VIDEO 3:35 minutes
How and why a central bank would build foreign currency reserves

Using reserves to stabilize currency

VIDEO 5:09 minutes
How a central bank could use foreign currency reserves to keep its own currency from devaluing

Financial crisis in Thailand caused by speculative attack

VIDEO 6:33 minutes
How a currency crisis in Thailand led to a banking crisis in the 1990s

Math mechanics of Thai banking crisis

VIDEO 7:41 minutes
Going through the mechanics of how a Thai financial institution can lose their shirt when their currency devalues.