COMPARATIVE ANALYSIS OF GOLD AND FOREIGN EXCHANGE RESERVES OF SELECTED COUNTRIES (2022-2024)

Abstract

This study provides a comparative analysis of gold and foreign exchange (FX) reserves in selected countries United States, Germany, Italy, France, Russian Federation, China, Switzerland, Japan, and India from Q1 2022 to Q2 2024. The research examines the fluctuations in these reserves, the proportion of gold relative to total reserves, and the impact of significant global events, such as the COVID-19 pandemic and geopolitical tensions, on reserve management strategies. The results from the Augmented Dickey-Fuller (ADF) test and ARIMA model analysis reveal that the fluctuations in gold reserves across the selected countries are largely random, with no significant changes influenced by specific economic or policy factors. Similarly, the proportion of gold relative to total reserves has remained stable, indicating that the allocation towards gold as a reserve asset is unaffected by global economic conditions. However, the FX reserves of the United States and Japan exhibit signs of non-random changes, suggesting a possible impact of global events on their reserve management strategies. In contrast, Germany, Italy, and India show no significant influence from external factors on their FX reserves. The study concludes that while some countries adjusted their reserve strategies in response to global events, others maintained stable and unaffected reserve levels, reflecting diverse approaches to reserve management during the analyzed period.