Global Currency Reserve

A global currency reserve is a stock of foreign currencies, gold, or other assets held by central banks and financial institutions to support their country's economy and facilitate international trade. These reserves help stabilize a nation's currency, ensure it can meet international payment obligations, and influence exchange rates. Major reserve currencies like the US dollar, euro, and Japanese yen are widely used worldwide. Essentially, these reserves act as a financial safety net and a tool for economic stability, enabling countries to manage fluctuations in their own currencies and support smooth global commerce.