Countries use reserve currencies as an international unit of account,a medium of exchange,and a store of value.

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Reserve currencies such as the US dollar, the euro, the Japanese yen, and the British pound are widely used as international units of account, mediums of exchange, and stores of value by countries around the world. They are used to settle international transactions, to price commodities and financial assets, and to hold foreign exchange reserves by central banks.

Countries Use Reserve Currencies as an International Unit of Account,a