FXstreet.com (Barcelona) - In August and September, the Reserve
Bank of Australia (
) accumulated around AUD 863 million in foreign exchange reserves.
In the course of its operations, the RBA accumulates foreign
currency on its balance sheet that is unrelated to the management
of its reserve assets.
According to FX Strategist Andrew Salter at ANZ, "Usually this
foreign currency is exchanged back into Australian dollars in the
market. Data released in its monthly statistical tables suggests
that for the past two months the Bank has continued to accrue this
foreign currency, but that it has elected to not convert it back
into Australian dollars in the market."
The RBA is thereby reducing upward pressure on the Australian
dollar exchange rate through this action. Moreover, "This policy
decision sends a clear signal of an evolution in the Bank's views
on the currency and its inclination to act on this view." Salter