Foreign Exchange Reserves

Foreign exchange reserves are the holdings of foreign currencies and assets that a country keeps on hand, usually managed by its central bank. They help stabilize the country's economy by supporting its currency's value, paying for imports, settling international debts, and intervening in currency markets when needed. These reserves include foreign currencies, gold, and other international securities. They act as a financial safety net, ensuring the country can meet its international obligations and maintain economic stability during global or domestic financial disruptions.