Gold and Foreign Exchange Reserves (Gold and Curre

1)are the foreign currencies held by a country's central bank. They are also called foreign currency reserves or foreign reserves.

Gold reserves are the amount of bullion that is held by the central bank or the treasury of the country. It contributes to the nation’s creditworthiness in the issuance of currency and bonds. Gold reserves that are held by the government should be distinguished from gold held by individuals or private institutions. According to the World Gold Council, the official gold reserves in the whole world amount to almost 35,000 tons, or 13 percent of total official reserves (as of Q1 2020), as the chart below shows. The concept of holding gold reserves started more than a century ago. Countries then strictly adhered to a practice known as the gold standard.

Sources:

⠀ Foreign Exchange Reserves: Definition, Purpose, Guidelines Gold Reserve - Simple Definition