Central-bank holdings
Monetary authorities hold reserve assets in multiple currencies according to liquidity, policy and risk-management needs.
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Reserve Currencies
Monetary authorities hold foreign exchange reserves for liquidity, intervention capacity and external obligations. The IMF's COFER dataset reports reserve holdings by currency at a global level. This hub focuses on five long-established reserve currencies: USD, EUR, JPY, GBP and CHF. Reserve use is only one part of a currency's role and does not turn a reference rate into an investment recommendation.
Reviewed
Topic definition
What are reserve currencies?
Reserve currencies are currencies held by central banks and other monetary authorities as part of official foreign exchange reserves. Authorities may use reserves to meet external obligations, support liquidity or conduct exchange-market operations under their own mandates. The IMF's COFER dataset reports the global composition of allocated reserves by currency. This hub focuses on five established reserve units, while recognising that official portfolios can include other currencies and that reserve status does not guarantee a fixed or stable exchange rate.
Key characteristics
How to understand reserve currencies
Global usage
Reserve currencies generally have broad payment, investment and foreign-exchange infrastructure.
Trade settlement
International invoicing and settlement can reinforce demand for currencies already used in official portfolios.
USD
United States Dollar
- Region
- Americas
EUR
Euro
- Region
- Europe
JPY
Japanese Yen
- Region
- Asia Pacific
GBP
British Pound
- Region
- Europe
CHF
Swiss Franc
- Region
- Europe
Currency comparison
Compare reserve currencies
Economic role
Official reserves and global liquidity
Reserve currencies help monetary authorities manage external liquidity and diversify official assets. Their role is connected to deep financial markets, payment infrastructure and international invoicing, but the composition of reserves changes over time and differs by authority. COFER is the relevant global statistical source for aggregate reserve shares. A currency's presence in reserves describes institutional use; it is not a recommendation, a promise of stability or a substitute for examining the exchange-rate framework on the currency profile.
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Major CurrenciesExplore eight widely used currencies that anchor international payments, trade, travel and foreign exchange comparisons.Asian CurrenciesCompare currencies used across major Asian economies, regional trade networks and international financial centres.Fixed Exchange Rate CurrenciesUnderstand selected currencies with official pegs, currency-board systems or tightly linked exchange-rate arrangements.
FAQ
Reserve currencies questions
What is a reserve currency?
A reserve currency is a currency held by monetary authorities as part of official foreign exchange reserves. Reserve portfolios can contain several currencies.
Does reserve status guarantee a stable exchange rate?
No. Reserve use does not prevent exchange-rate movement. Values still respond to monetary policy, economic conditions and market demand.
Is this an exhaustive list of reserve currencies?
No. This page is a focused collection of five established reserve currencies. The IMF COFER dataset identifies additional currencies in its published composition.
Sources
Evidence and classification
Topic membership is editorially curated from existing CurrencyHub currency profiles. Institutional claims use the sources below; exchange-rate values remain on the converter and pair pages.