foreign exchange reserves

USAGE SUMMARY

"foreign exchange reserves" is a correct and usable phrase in written English.
You can use it to refer to the funds that a country holds in reserve in another currency. For example, "Japan has an impressive $1 trillion in foreign exchange reserves."

✓ Grammatically correct

News & Media

Academia

Human-verified examples from authoritative sources

Exact Expressions

29 human-written examples

Foreign exchange reserves will soar.

The New York Times

The ECB has substantial foreign exchange reserves.

The Guardian - Opinion

"We have enough foreign exchange reserves".

The New York Times

It has the world's largest foreign exchange reserves.

The New York Times

Should India Use Foreign Exchange Reserves for Financing Infrastructure?

Stanford University

Foreign exchange reserves are at a record $90 billion.

The New York Times

Human-verified similar examples from authoritative sources

Similar Expressions

31 human-written examples

Foreign-exchange reserves have shrunk.

The Economist

So are foreign-exchange reserves.

The Economist

Foreign-exchange reserves have fallen too.

The Economist

Foreign-exchange reserves are still under pressure.

The Economist

It holds $2.6 trillion of foreign-exchange reserves.

The Economist

Expert writing Tips

Best practice

When discussing a country's financial health, always specify the currency or currencies held in the "foreign exchange reserves" to provide clarity. For example, "The country's foreign exchange reserves are primarily in US dollars and euros".

Common error

Avoid conflating "foreign exchange reserves" with a country's external debt. Reserves are assets, while debt represents liabilities. A country with high reserves can still have significant debt.

Linguistic Context

The phrase "foreign exchange reserves" functions as a noun phrase, typically serving as the subject or object of a sentence. As Ludwig AI confirms, it's a grammatically sound expression used to refer to a country's holdings of foreign currencies.

Expression frequency: Very common

Frequent in

News & Media

78%

Academia

12%

Formal & Business

5%

Less common in

Encyclopedias

3%

Science

1%

Wiki

1%

Ludwig's WRAP-UP

In summary, "foreign exchange reserves" is a commonly used noun phrase that refers to a country's holdings of foreign currencies. Ludwig AI confirms its grammatical correctness and widespread use in various contexts, particularly in news reporting, academic discussions, and formal business settings. When writing about economics or international finance, it's important to use this term accurately, being mindful of its meaning and the factors that influence a country's reserve levels. Remember to avoid common errors, such as confusing reserves with debt, and always specify which currencies constitute the reserves when possible.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

forex reserves

Shorter, more informal version using a common abbreviation.

currency reserves

Focuses on the type of asset held, emphasizing the currency aspect.

external reserves

Highlights the external nature of the reserves, referring to assets held abroad.

international reserves

Emphasizes the global context and use of the reserves.

official reserves

Highlights that these reserves are held by official entities like central banks.

monetary reserves

Connects the reserves to the monetary policy and financial stability of a country.

reserve assets

Broader term that includes foreign exchange but can also encompass other assets.

foreign currency holdings

Describes the act of possessing foreign currencies rather than the reserves themselves.

nation's savings in foreign currencies

Expands on the concept to describe the broader context of national savings.

central bank's foreign assets

Specifies the holder of the assets and their foreign nature.

FAQs

How are "foreign exchange reserves" used by a country?

Countries use "foreign exchange reserves" to influence their exchange rate, pay for imports, and service external debts. They also act as a buffer against economic shocks.

What factors influence the level of a country's "foreign exchange reserves"?

Trade surpluses, foreign investment inflows, remittances from citizens working abroad, and borrowing from international institutions can all increase a country's "foreign exchange reserves".

What does it mean when a country's "foreign exchange reserves" are falling?

A decline in "foreign exchange reserves" can indicate that a country is facing economic difficulties, such as a trade deficit, capital flight, or an unsustainable exchange rate policy.

Are "currency reserves" the same as "foreign exchange reserves"?

Yes, the terms are often used interchangeably. Both refer to a country's holdings of foreign currencies, which are typically managed by the central bank.