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What is the projection and anatomy of interest in the figure below?
Foreign Exchange Reserves
Foreign exchange reserves are assets held on reserve by a central bank in foreign currencies, used to back liabilities and influence monetary policy.
Domestic Money Supply
Refers to the total amount of money available within a country's economy at a specific time, including cash, coins, and balances held in bank accounts.
Appreciate
To increase in value or price over time, often used in the context of currencies, assets, or investments.
Floating Exchange Rates
A currency valuation system in which exchange rates are determined by the free market forces of supply and demand without direct intervention by national governments.
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