What macroeconomic concepts can I use to analyze foreign exchange reserves

Question

We were asked to analyzed this article

http://business.inquirer.net/money/topstories/view/20080707-146930/Foreign-exchange-reserves-climb-to-367B-in-June

The law of supply is the only thing that I can think to use in this article. Well, it is a micro-economic concept but our class is macroeconomics. What macroeconomic concepts can I use?

Answer 1

:) law of supply may not be the right tool to analyze this

in this article you may analyze the possible change in

BOP (improved)

Exchange rate (may rise)

interest rates ( may rise reflecting a rise in C and I )

inflation and unemployment

international confidence, leading to more investments

GDP

etc