Monetary reserve

(redirected from Currency reserve)

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.

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References in periodicals archive ?
Global Banking News-August 30, 2011--Vietnam to raise bank foreign currency reserve ratios(C)2011 ENPublishing - http://www.enpublishing.co.uk
-Vietnam to raise bank foreign currency reserve ratios
As a result, the Nepal Rastra Bank, due to the decline of foreign currency reserve and also decline in the Indian currency reserve, has reached to the stage where it has to cut down the supply of Indian currency to those who want to buy them.
Foreign currency reserve!
Global Banking News-December 1, 2017--Belarus central bank to raise foreign currency reserve requirements for banks
Belarus central bank to raise foreign currency reserve requirements for banks
They said the central bank is using currency swaps with commercial banks which flatter the currency reserve figures.
Kazakhstan strains reserves to smooth way for gradual devaluation
Hong Kong's official foreign currency reserve assets has risen for five consecutive months to $218.1 billion in July, up $11.6 billion on June, the Monetary Authority said on Friday.
HK's foreign currency reserves grow five months in a row
This is why we need to strengthen the foreign currency reserve. This is part of our work to safeguard financial stability," Riksbank governor Stefan Ingves said.
Sweden's central bank to boost foreign currency reserves by SEK100bn
Hong Kong's foreign currency reserve assets stood at US$112.5 billion at the end of July, slightly up from US$112.4 billion in June, the Hong Kong Monetary Authority said Wednesday.
H.K. slips to No. 5 in foreign exchange reserves ranking
At the end of the quarter, the foreign currency reserve holdings of the Federal Reserve System and the ESF were valued at $19.5 billion and $16.1 billion, respectively, and consisted of German marks and Japanese yen.
Treasury and Federal Reserve foreign exchange operations
The fact is that the government's foreign currency reserve is continuously declining.
Economy heading towards disaster!

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