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International reserves

The currency assets and gold held by a country's central bank.

How to read the number

A buffer for external settlements: reserves cover a shortage of currency and defend the chosen exchange rate regime.

When the metric lies

Not every part of the reserves is available. Frozen assets, gold in the vault and balances in friendly currencies turn into usable money at different speeds, and the headline total hides that.

Also known as: foreign exchange reserves

Related terms