A central bank holds foreign exchange reserves for:

Name: A central bank holds foreign exchange reserves for:
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Foreign exchange reserves are held by central banks primarily for foreign exchange interventions, which involve buying and selling currencies in order to maintain exchange rate stability, and to provide liquidity to the foreign exchange market. Central banks may also hold reserves for other reasons, such as diversification and safekeeping, but these are secondary objectives.

A Central Bank Holds Foreign Exchange Reserves For