foreign exchange reserve


Deposits of a foreign currency held by a central bank. Holding the currencies of other countries as assets allow governments to keep their currencies stable and reduce the effect of economic shocks. The use of foreign exchange reserves became popular after the decline of the gold standard.

Use this term in a sentence

You should try to have enough in your foreign exchange reserve so you can take on a good deal when it comes.

​ Was this Helpful? YES  NO 3 people found this helpful.

The foreign exchange reserve was a really cool thing for me to learn about cause it was interesting and it had a lot of cool things in it.

​ Was this Helpful? YES  NO 10 people found this helpful.

My brother wrote a letter to the President because he is concerned that China's foreign exchange reserve gives it an inordinate amount of power over our currency.

​ Was this Helpful? YES  NO 5 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Korea Investment Corporation (KIC) official settlements account