Foreign Currency Reserve
/ˈfôrən ˈkərənsē rɪˈzərv/
Definitions
- (n.) Assets held by a central bank or monetary authority in foreign currencies, used to back liabilities and influence monetary policy.
The country's foreign currency reserve increased to stabilize its exchange rate.
Forms
- foreign currency reserve
- foreign currency reserves
Related terms
See also
Commentary
Typically managed by central banks, these reserves are crucial for intervening in foreign exchange markets and ensuring financial stability.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.