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Glossary entry

Spanish term or phrase:

(reservas monetarias) a base monetaria de X veces

English translation:

(ratio of international reserves) to monetary base of X

Added to glossary by patinba
Oct 11, 2012 17:33
11 yrs ago
2 viewers *
Spanish term

a base monetaria de X veces

Spanish to English Bus/Financial Economics Nicaraguan Central Bank
I can't get the equation behind this:

"En este contexto, de estabilidad macroeconómica y financiera, la politica monetaria continuará orientada a garantizar la convertibilidad de la moneda. Para respaldar el régimen cambiario se asegurará la variación requerida en los Activos Domésticos Netos del Banco Central, que permita la acumulación de Reservas Internacionales Netas Ajustadas (RINA). Se mantendrá una cobertura de reservas internacionales *a base monetaria de 2.4 veces*."

What I can't help understanding (and what doesn't make sense) is for "forex reserve coverage to be 2.4 times" the money supply. I'm sure I'm wrong, given the value of the córdoba. I need another reading.
Proposed translations (English)
4 +1 (ratio of international reserves) to monetary base of X
3 a monetary base of X times
References
From the ECLAC (CEPAL)
Change log

Oct 16, 2012 11:38: patinba Created KOG entry

Discussion

patinba Oct 11, 2012:
Actually I can't imagine why you are having this problem with a clear and quite standard economic text. Maybe if you sleep on it, and read William's contribution, all will be clear.
Parrot (asker) Oct 11, 2012:
Trust me, aid's the extra-textual context I've been in international aid for 14 years - consider this practically a UN agency schedule. Gov'ts send these reports with aid applications. That's why I said my reading wasn't making much sense. I can't just separate this from 6 years of previous Nicaraguan budgets on the strength of a possibly bad preposition, hope you see my problem. It's a ratio, sure enough, but I think something went wrong with the original somewhere.
patinba Oct 11, 2012:
Your text is not directly related to aid except that it says that the govt. holds enough dollars to keep the exchange rate steady. Prudently they will hang on to their reserves, and borrow for their projects - everybody does it.
Parrot (asker) Oct 11, 2012:
But I'm talking aid Nicaragua is aid-eligible based on a per-capita income of less than 1,520 USD per annum. If indeed the government had that money, how come I'm doing a hard-beset welfare plan? (My doc is on funding problems).
patinba Oct 11, 2012:
Foreign exchage reserves are not the same as foreign exchange rates, but are the amount of foreign currency the Nica govt. holds in its treasury to back its local currency (i.e., at the moment, if everyone went to the bank to exchange local currency for dollars, there would be 2.4 times the amount needed to pay everybody, so the monetary base is reasonably covered.
Parrot (asker) Oct 11, 2012:
That's what I understood So - why is 1 USD equal to 23.86 córdobas? (money supply). It would seem reserves are less, or am I missing something?
patinba Oct 11, 2012:
No, dear bird, foreign currency reserves are 2.4 times the local currency monetary base.
Parrot (asker) Oct 11, 2012:
O sea ¿una base monetaria 2.4 veces la cobertura en reservas? (Gracias Rocío!)

Proposed translations

+1
13 mins
Selected

(ratio of international reserves) to monetary base of X

Your text is fine.

International Liquidity Management: Sterilization Policy in Illiquid
www.kellogg.northwestern.edu/.../sterilize.pdf - Traducir esta página
Formato de archivo: PDF/Adobe Acrobat - Vista rápida
the ratio of international reserves to monetary base from 3.5 around 1990 to over 6.0 by. 1993. This pattern was repeated in many emerging economies during ...
[PDF]
Contents - Central Bank of Egypt
www.cbe.org.eg/public/EconomicVol51No3En.pdfFormato de archivo: PDF/Adobe Acrobat
net international reserves-to-monetary base ratio≥20%, a non-negative primary fiscal balance-to- nominal GDP, non-oil fiscal revenue-to-nominal GDP ...
[PDF]
P-value - CiteSeer
citeseerx.ist.psu.edu/.../download... - Estados Unidos - Traducir esta página
Formato de archivo: PDF/Adobe Acrobat - Vista rápida
REGEXCH. Average de facto exchange rate regime of the region. RESBASE. Initial Ratio of International Reserves to monetary base (Source: IMF, line 11 / line ...
[PDF]
P-value - CiteSeer
citeseerx.ist.psu.edu/.../download... - Estados Unidos - Traducir esta página
Formato de archivo: PDF/Adobe Acrobat - Vista rápida
REGEXCH. Average de facto exchange rate regime of the region. RESBASE. Initial Ratio of International Reserves to monetary base (Source: IMF). SAFRICA
Peer comment(s):
agree William A McNab
3 hrs
Thanks
Something went wrong...
4 KudoZ points awarded for this answer. Comment: "Thanks to everyone here."
3 mins

a monetary base of X times

Querida Cecilia:

Te llegó una de esas páginas de forex que muchas veces no tiene sentido, lamentablemente, como traductoras estamos con las manos atadas. Lo que yo haría es comentarle al cliente que esto no tiene sentido, y traducir el sin sentido...
Something went wrong...

Reference comments

3 hrs
Reference:

From the ECLAC (CEPAL)

With a view to maintaining the credibility of the exchange-rate regime as an anchor for price stability —nominal slippage of 5% in the exchange rate— a target level of international reserves was set at a minimum of 2.5 times the monetary base.

--------------------------------------------------
Note added at 3 hrs (2012-10-11 21:13:37 GMT)
--------------------------------------------------

And also:
"Currently, Nicaragua’s International Reserves cover over 2.2 times (IMF requirement) the country’s monetary base. "

(http://www.pronicaragua.jigsy.com/entries/investment-and-eco...
Reference:

http://www.eclac.cl/publicaciones/xml/6/46986/Nicaragua-completo-web-ing.pdf

Peer comments on this reference comment:
agree patinba : Excellent William! Thanks.
52 mins
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