What is foreign exchange reserve??
Dear student
The foreign currency assets held by the central bank of a particular country are referred as foreign exchange reserves. Keeping these reserves provides a country with higher credit worthiness to repay its foreign liabilities and vice-versa. These reserves are used for payment of international debts associated with foreign trade, investments, and other operations.
Regards
The foreign currency assets held by the central bank of a particular country are referred as foreign exchange reserves. Keeping these reserves provides a country with higher credit worthiness to repay its foreign liabilities and vice-versa. These reserves are used for payment of international debts associated with foreign trade, investments, and other operations.
Regards