Foreign-Exchange Reserves

Reserve Asset
Reserve assets are financial instruments that a central bank or a government holds to implement monetary policy and ensure financial stability. These assets are crucial for maintaining liquidity, managing exchange rates, and backing up domestic currency.
Sovereign Wealth Fund (SWF)
A sovereign wealth fund (SWF) is a state-owned investment fund composed of various financial assets strategically managed to increase wealth and provide financing for the future economic needs of the nation.

Accounting Terms Lexicon

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