Monetary reserve

(redirected from Currency reserves)

Monetary Reserve

The foreign currencies and precious metals that a central bank holds. A central bank's monetary reserve allows it to regulate its own currency; that is, a central bank with a large amount of reserves in euros is likely to closely follow or even peg its currency to the euro. On the other hand, central banks that keep monetary reserves in multiple currencies are more likely to follow either a basket peg or to have a floating currency. A monetary reserve is also called a currency reserve.

Monetary reserve.

A government's monetary reserve includes the foreign currency and precious metals that its central bank holds. That reserve enables the government to influence foreign exchange rates and to manage its transactions in the international marketplace.

For example, a country with a large reserve of US dollars is in a position to make significant investments in US markets.

Mentioned in ?
References in periodicals archive ?
On March 2, foreign currency reserves held by the central bank were recorded at $12,233.
CBA's currency reserves started to decrease in July 2014.
On January 19, foreign currency reserves held by the central bank were recorded at $13,532.
Summary: According to the latest indicators of the Central Bank of Tunisia (BCT), the bank's foreign currency reserves as of January 23, 2018, continued their decline, standing at only 89 days
On January 5, foreign currency reserves held by the central bank were recorded at $13,982.
On November 30, foreign currency reserves held by the central bank were recorded at $ 12,660.
7 billion debt exchange with the Central Bank Monday that will help boost BDL's foreign currency reserves, the Finance Ministry said in a statement.
Summary: Islamabad [Pakistan], Aug 15 (ANI): Pakistan could become ineligible for financial aid from one of the two main arms of the World Bank Group - the International Bank for Reconstruction and Development (IBRD), as the country's official foreign currency reserves are rapidly declining.
The report, prepared by the Media Center of the Program of Communication with Yemeni Scolars in cooperation with the Center for Studies and Economic Information, explained that following the the looting of nearly $ 5 billion of the foreign currency reserves of Yemen's Central Bank, tens of millions of Yemeni citizens were suffering from a tragic situation and in need to urgent assistance.
The IMF has compared different countries' currency reserves as a share of the country's short-term liabilities in foreign currency.
BAKE[pounds sterling] (CyHAN)- The strategic currency reserves of Azerbaijan in the first quarter of 2015 exceeded the country's external debt fivefold, according to the Azerbaijani Central Bank's monetary policy report.
The move once again exposes the hollowness of the government's much-touted claim about its foreign currency reserves in addition to putting a question mark over its claim of stability in external accounts.