Macroeconomics

Foreign Exchange Reserve

Definition

What is Foreign Exchange Reserve?

Foreign-currency assets held by a central bank or monetary authority.

Example in practice

Reserves can be used to meet external obligations or influence currency markets.

Keep learning

The total market value of final goods and services produced within a country during a period.

Gross domestic product adjusted for changes in prices.

Gross domestic product measured at current prices without adjusting for inflation.

A market environment in which investors favour higher-risk assets.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.