Monetary reserve

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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 ?
With the PML-N's tenure ending today (Thursday, May 31), the country's foreign exchange reserves stand depleted, sparking concern over Pakistan's ability to meet future payment obligations and manage a bulging current account deficit.
Regarding the Foreign Exchange Reserves (FER), he informed that when the government took office, the foreign exchange reserves had depleted to only US$ 6.3 billion.
KARACHI -- Foreign exchange reserves of the State Bank of Pakistan (SBP) amounted to $11.94 billion on March 16, down 1.5 per cent from a week ago, according to an official statement on Thursday.
Summary: The level of net foreign exchange reserves of the Central Bank of Tunisia (BCT) continues to worry.
Foreign exchange reserves at the Central Bank of Egypt (CBE) increased to $36.143bn at the end of August compared to $36.036bn at the end of July, an increase of $107m, the CBE said on Wednesday.
The volume of gold and foreign exchange reserves on the national definition grew by USD60 million, totaling USD5,245.1 million in the equivalent as of the same date.
Otherwise, according to the data published by the National Bank of the Republic of Macedonia, by the end of July this year the state foreign exchange reserves marked 2.5 billion euro which is an increase of 429.4 million euro compared to the end of June this year.
KARACHI -- The total liquid foreign exchange reserves of the country amount dollars 20.521 billion, said State Bank of Pakistan (SBP).
The krone depreciated further against most of the major currencies in the Bank's foreign exchange reserves in 2015, resulting in a foreign exchange gain of NOK 55 billion in 2015 (59).
South Korea's foreign exchange reserves dwindled for the third consecutive month in January largely due to a devaluation of non-U.S.
The National Bank of Macedonia keeps 2.4 billion euros, while foreign exchange reserves went up by as much as 20 percent in November this year relative to the same month of 2013.
| ISLAMABAD, Sept 24 (KUNA) -- The government of Pakistan agreed to borrow USD 625 million from domestic and international banks to boost foreign exchange reserves and stop continuous bashing of the rupee.

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