Forex Reserves: A Catalyst for Economic Sustainability

Abstract

The intersection of foreign exchange reserves allocation and the pursuit of Sustainable Development Goals 8 (SDG 8) stands at the forefront of contemporary economic discourse. This research paper conducts a comprehensive analysis aimed at understanding the intricate relationship between countries' Foreign Exchange Reserves and their progress toward achieving sustainable development. Through quantitative analysis, this research evaluates the alignment of foreign exchange reserves with SDGs 8 by identifying the linkage between Forex and GVA. The findings reveal valuable insights into the patterns of foreign exchange allocation and their significance for sustainable development initiatives. Moreover, this research offers a clear perspective for optimizing foreign exchange reserve management to better serve the aspirations of sustainable development. This study offers a vital framework for policymakers, economists, and transnational institutions striving to harmonize economic stability with sustainable development priorities on a global scale. Granger Causality test have been considered for Quantitative analysis of data.