Currency Reserves

Currency reserves are holdings of foreign currencies, gold, and other financial assets that a country's central bank or monetary authority keeps. These reserves ensure stability in the country's economy by supporting its own currency, helping to manage exchange rates, pay international debts, and bolster confidence among traders and investors. They serve as a financial buffer during economic uncertainties or crises, allowing the country to intervene in currency markets to maintain stability and prevent excessive fluctuations. Essentially, currency reserves are the country’s financial safety net for maintaining economic stability and smooth international trade.