Reserve Assets

Reserve assets are funds and valuable assets that a country holds to support its economy and currency stability. These include foreign currencies, gold, and special drawing rights from international organizations. Think of them as a financial safety net, which enables a country to manage exchange rates, pay international debts, and respond to economic emergencies. By maintaining reserve assets, a country ensures confidence among investors and trading partners that it can meet its financial commitments, helping to stabilize its economy during periods of economic uncertainty or market volatility.