Definition of reserve currency in English:

reserve currency

Line breaks: re|serve cur|rency

noun

  • A strong currency widely used in international trade that a central bank is prepared to hold as part of its foreign exchange reserves.
    More example sentences
    • The dollar itself became an international reserve currency, which central banks were prepared to accept as payment in external dealings rather than insisting on payment in their own national currencies.
    • The advantage for the United States in being an international reserve currency is that allows it to more easily run a trade deficit, as other countries are happy to hold dollars to finance its trade gap.
    • This may change if the world's central bankers one day decide they have outgrown their preference for a single reserve currency.

Get more from Oxford Dictionaries

Subscribe to remove ads and access premium resources

Word of the day skosh
Pronunciation: skōSH
noun
a small amount; a little