Forex reserves, or foreign exchange reserves, are the holdings of a specific central bank in foreign currencies. Central banks use their foreign currency reserves in times of crisis, such as when the national currency is exposed to losing a lot of its value due to hyperinflation. Countries that peg their exchange rate usually use their foreign currency reserves to do so, as they need to maintain that artificial price.
Central banks use their foreign currency reserves for various reasons. Even when central banks do not peg their currency to another currency, they often try to keep the value of their local currencies low in comparison with international reserves currencies. They do so with the assumption that it makes their...
Forex reserves are foreign currency deposits held by a country's central bank or monetary authority. Forex reserves are used to support the country's currency and maintain the exchange rate stability by buying or selling foreign currencies. The reserves can also be used to pay for imports, service foreign debt, or provide liquidity in times of crisis. Forex reserves typically include major currencies such as the US dollar, euro, and yen, as well as gold and other assets.
Sure thing, buddy! Forex reserves are like a country's stash of foreign currencies held by their central bank. They're there to keep things stable, make international trade smoother, and help with managing monetary policies