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 ?
The Hong Kong Monetary Authority (HKMA) announced that the official foreign currency reserve assets of Hong Kong amounted to US$441.
Global Banking News-December 1, 2017--Belarus central bank to raise foreign currency reserve requirements for banks
Zhang Qi, an analyst at Haitong Securities, told AFP on Monday China's gold to foreign currency reserve ratio remained much lower than other countries, adding: "The internationalisation of the renminbi is irreversible.
They said the central bank is using currency swaps with commercial banks which flatter the currency reserve figures.
Hong Kong's official foreign currency reserve assets has risen for five consecutive months to $218.
This is why we need to strengthen the foreign currency reserve.
The Hong Kong Monetary Authority (HKMA) announced today (Thursday) that the official foreign currency reserve assets of Hong Kong amounted to US$413.
The review is to include issues such as the size of the central bank's currency reserve and how much equity it should have.
SAN, March 15 (KUNA) -- Yemeni Central Bank said Saturday foreign currency reserve dropped USD 120 million in January 2014, compared with the previous month, to reach USD 5.
Hong Kong's official foreign currency reserve assets has risen for four consecutive months to $207 billion in June, up $1.
At the end of the quarter, the foreign currency reserve holdings of the Federal Reserve System and the ESF were valued at $19.
The Hong Kong Monetary Authority (HKMA) announced today (July 7) that the official foreign currency reserve assets of Hong Kong amounted to US$408.