Besides the FIIs pulling out, there is dollar demand also from the State-owned oil importers. So long as the global financial turmoil persists, the central bank will keep offloading greenbacks.
Its foreign exchange reserves kitty is already slimmer as a result. Whether this gathering trend marks a sudden reversal of the phenomenon of rising foreign exchange reserves bears watching.
But one thing is for sure. There's not much that can prevent weakness in the currency unit in the period ahead.
Could you explain the emboldened parts to me?
I know the meaning of individual words but I can't understand them altogether. I even know the meaning of "foreign exchange reserves".
Whether this gathering trend marks a sudden reversal of the phenomenon of rising foreign exchange reserves bears watching.
I understand it as
- gathering trend = growing trend, becoming more apparent.
- marks = signifies, shows, presages.
so the writer wonders if the trend he sees growing will suggest a reversal...
- rising foreign exchange reserves = each country has a reserve/stash/extra resource of foreign currency. It appears that these reserves are growing.
- bears = warrants, is worth,
- watching = paying attention to / worrying about
so we speak of the phenominum of growing foreign cash reserves; is it sufficiently disturbing to command my paying attention?
- 'bears watching' here means 'it'd be advisable to keep an eye on it'. In this sort of context it would be easy to be misled by the financial jargon use of 'bear' (noun) to mean 'someone who makes money from a falling market', and by extension - more loosely - a pessimist.