Definition of Foreign Exchange Reserves

Foreign exchange reserves consist of foreign currency, deposits denominated in foreign currency, Monetary Gold, Special Drawing Rights (SDRs) and Reserve position in the International Monetary Fund (IMF). Foreign exchange reserves are held by monetary authorities to finance trade imbalances, check the impact of foreign exchange fluctuations and address other issues under the purview of the central bank.

Related Indicators

• Foreign Exchange Reserves Including Gold
• Exchange Rate
• Oil Reserves
• Trade Balance (USD)
• Percent Of World Oil Reserves