Change of reserves:

Question

An increase in foreign assets held by the central bank is recorded with a positive or a negative sign for the change of reserves?

Answer 1

good question. While I'm not positive, I believe holding foreign assets increases a bank's reserves. (It certainly increases its foreign reserves).

check this site:
http://www.answers.com/topic/foreign-exchange-reserves

Answer 2

that's what i don't get, if you increase foreign assets, it means you pay out money right? Would the reserves decrease?