Reserve Currency

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A Reserve Currency is a large quantity of currency maintained by central banks and other major financial institutions to prepare for investments, transactions, and international debt obligations, or to influence their domestic exchange rate. A large percentage of commodities, such as gold and oil, are priced in the Reserve Currency, causing other countries to hold this currency to pay for these goods.

A Reserve Currency is a large amount of currency held by central banks and major financial institutions to use for international transactions.A Reserve Currency reduces exchange rate risk since there's no need for a country to exchange its currency for the reserve currency to do trade.Reserve Currency helps facilitate global transactions, including investments and international debt obligations.A large percentage of commodities are priced in the reserve currency, causing countries to hold this currency to pay for these goods.Source: https://www.investopedia.com/terms/r/reservecurrency.asp