Foreign Exchange Reserves | Notes
Foreign Exchange Reserves also known as Official Reserves and International Reserves are the foreign assets held or controlled by the central banks. The reserves themselves can either be gold or a specific currency like the dollar or the euro. They can also be special drawing rights and marketable securities denominated in foreign currencies like treasury bills, government bonds, corporate bonds and equities and foreign currency loans. The reserves are generally used to finance the balance of payments imbalances or to control exchange rates.