What is Foreign reserve?
A '''foreign reserve''' is the [[currency]] from another nation that is held by a nation's [[treasury]]. They are another set of [[asset]]s in a country. Formerly, only [[gold]] and [[silver]] were used as reserves, but now the currency of other countries is used. There is a benefit to having a foreign reserve. When a nation has one, it can change the [[exchange rate]] to make it best for the country. But sometimes the exchange rate drops and the foreign reserve becomes worthless. == Other websites == *[http://data.worldbank.org/indicator/FI.RES.TOTL.CD Total reserves] by each member of the [[International Monetary Fund]] [[Category:Money]] {{stub}}