Reserve Currency

Reserve Currency

Summary of Reserve Currency

The currency of a major trading national, widely accepted in international transactions and regarded as stable, that is held by the central banks or monetary authorities of other nations as a form of collateral for their own currency. The use of reserve currencies arose after World War I as a substitute for gold. From the end of World War II up to the collapse of the Bretton Woods System, the U.S. dollar was the principal reserve currency. It still remains the largest reserve currency.

(Main Author: William J. Miller)

Reserve Currency in International Trade

Meaning of Reserve Currency, according to the Dictionary of International Trade (Global Negotiator): A national currency such as the US dollar, the European euro EUR, or the Swiss franc CHF, used by many countries to settle debit balances in their international accounts. Central banks generally hold a large portion of their monetary reserves in reserve currencies, which are sometimes called “key currencies”.

Concept of Reserve Currency

An introductory definition of Reserve Currency is provided here: a currency that countries hold in reserve because of its strength and stability

Resources

See Also

  • Foregin Policy
  • Foreign Affairs

Hierarchical Display of Reserve currency

Finance > Monetary relations > International finance > International liquidity

Reserve currency

Concept of Reserve currency

See the dictionary definition of Reserve currency.

Characteristics of Reserve currency

[rtbs name=”xxx-xxx”]

Resources

Translation of Reserve currency

Thesaurus of Reserve currency

Finance > Monetary relations > International finance > International liquidity > Reserve currency

See also

  • European farming model
  • European model of agriculture