DBC 2386 - Forex Reserves

 

The Banking Tutor 

Daily Banking Concept -  2386 

Forex Reserves

 

Forex Reserves are assets held by a nation’s central bank, comprising foreign currencies, gold, Special Drawing Rights (SDRs), and International Monetary Fund (IMF) reserve positions. Used to back national liabilities and stabilize currency value during economic volatility, these reserves act as a cushion to manage balance of payments and ensure financial stability.