Currency Stabilization Fund

A Currency Stabilization Fund is a financial reserve a country maintains to support its national currency's value during economic volatility or external shocks. When a country's currency faces sharp declines due to market speculation, economic uncertainty, or external pressures, the fund can be used to buy its own currency or implement measures to stabilize its price. This helps ensure economic stability, control inflation, and maintain investor confidence. Essentially, it acts as a financial safety net to prevent rapid currency devaluations that could harm the country's overall economic health.