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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