Foreign currency assets held by a government for the purpose of purchasing domestic currency in the foreign exchange market are called

Question

Quizplus · Accepted Answer

International reserves are foreign currency assets held by a government or central bank that can be used for several purposes, such as stabilizing exchange rates, paying off international debt, providing liquidity to the economy, and intervening in the foreign exchange market to influence the exchange rate of the domestic currency. International reserves can also include gold, special drawing rights (SDRs), and other reserve assets.

Foreign Currency Assets Held by a Government for the Purpose