Foreign reserve facts for kids
A foreign reserve is the currency from another nation that is held by a nation's treasury. They are another set of assets 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.
Images for kids
-
Reserves of SDRs, forex and gold in 2006
-
Foreign exchange reserves minus external debt in 2011
.PNG)
See also
In Spanish: Reserva internacional para niños
All content from Kiddle encyclopedia articles (including the article images and facts) can be freely used under Attribution-ShareAlike license, unless stated otherwise. Cite this article:
Foreign reserve Facts for Kids. Kiddle Encyclopedia.