currency reserves
Monetary safety net
Currency reserves are foreign money, gold, and other liquid assets held by a country's central bank.
Governments maintain reserves to stabilize their own currency, pay international debts, and weather economic crises.
A nation with large currency reserves can defend against speculative attacks on its currency.
China holds the world's largest currency reserves.
- interest ratesPrice paid for borrowing
- trade deficitsImports exceeding exports
- Bretton Woods systemPostwar fixed exchange rate framework
- foreign exchangeTrading between national currencies
- gold standardMeasure of ultimate quality
dollar dominance · financial crises · running low · safe haven assets · capital flows · hot money · balance sheets · fiscal policy · treasury bonds · quantitative easing · printing money · war chest · rainy day fund · payment systems · IMF · petrodollars · contingency planning
currency reservesforeign debt
Borrowing from other countries
sovereign debt · national debt · debt burden · debt obligations · fiscal deficit
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