foreign official dollar reserves (FRODOR)

Definition

The sum amount of U.S. Treasury and U.S. agency securities held in overseas banks. The term was first used by investment researcher Ed Yardeni to help explain the relationship between international liquidity in foreign central banks and U.S. monetary policy. As the dollar reserves increase, stock prices, commodities, and real estate values increase but the value of the dollar declines. The opposite is true when the reserves drop.
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