forex reserves

USAGE SUMMARY

The phrase "forex reserves" is correct and usable in written English.
It can be used when discussing the foreign exchange reserves held by a country's central bank or financial institution. Example: "The country's forex reserves have increased significantly over the past year, providing a buffer against economic instability."

✓ Grammatically correct

News & Media

Academia

Human-verified examples from authoritative sources

Exact Expressions

7 human-written examples

"People may estimate and calculate, based on the size of the forex reserves, how much the reserves can generate each year in way of returns," the agency said.

The New York Times

He added: "This makes it easier to turn a blind eye to the billions in the space programme and [$300bn] forex reserves and find more altruistic or pragmatic diplomatic reasons.

The Guardian

The problem is that with little forex coming in, and with reserves already standing at just $29bn, the central bank could soon find itself hitting the reserve adequacy prescription, under which it must hold forex reserves to cover six months of imports, or $27bn.

The Guardian

Venezuela's forex reserves have fallen to $10 billion, down two thirds from 2014.

Forbes

In another report, the paper quoted the Reserve Bank of India Governor, D Subbarao, as saying that India had "adequate" forex reserves at present and recent steps taken to curb the "volatility" of the rupee would continue until stability was restored.

BBC

Meanwhile Russian gold and forex reserves have fallen to their lowest levels since 2009 as the central bank has spent billions to prop up the currency.

Huffington Post

Human-verified similar examples from authoritative sources

Similar Expressions

53 human-written examples

Before Lagarde touched down in Abuja, Nigeria's central bank had been struggling to meet demand for forex while maintaining adequate reserves.

The Guardian

Although it doesn't offer futures and forex trading (those are reserved for TD's thinkorswim platform) Trade Architect doesn't require any installation or sign-up fees.

Forbes

Forex by numbers £3.3 Trillions of deals using Forex rates.

Independent

Was the Forex Fixing Fixed?

Columbia University

Covers equities, indices, economics, FOREX, interest rates, fixed incomes, and derivatives.

University of California, Berkeley

Expert writing Tips

Best practice

Use "forex reserves" when referring to the specific portion of a nation's reserves held in foreign currencies, distinguishing it from gold or other assets.

Common error

Avoid using "forex reserves" interchangeably with "total reserves". "Forex reserves" refers specifically to foreign currency holdings, while "total reserves" encompasses all assets held by a central bank, including gold, special drawing rights, and other investments.

Linguistic Context

The phrase "forex reserves" functions as a noun phrase, typically serving as the subject or object of a sentence. As Ludwig AI explains, it refers to the foreign exchange holdings of a country's central bank. It describes a specific type of asset.

Expression frequency: Uncommon

Frequent in

News & Media

66%

Academia

16%

Science

16%

Less common in

Formal & Business

0%

Encyclopedias

0%

Wiki

0%

Ludwig's WRAP-UP

The phrase "forex reserves" is a grammatically correct noun phrase referring to a country's holdings of foreign currencies. Ludwig AI confirms its validity and widespread usage. While not as common as more general terms, it is frequently found in news and academic contexts when discussing economic stability and international finance. It's important to differentiate "forex reserves" from "total reserves", focusing specifically on the foreign currency component. Understanding the role and management of "forex reserves" is crucial for assessing a nation's financial health and its ability to navigate global economic challenges.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

foreign exchange holdings

Replaces "reserves" with "holdings", emphasizing the act of possessing foreign currency.

currency reserves

A more general term that can include other types of currency besides forex.

foreign currency assets

Focuses on the asset aspect of the reserves, suitable for financial reporting contexts.

external reserves

Highlights that the reserves are held externally, often by a central bank.

international reserves

Emphasizes the global nature of these reserves and their role in international finance.

reserves of foreign currency

Inverts the phrase structure, slightly changing the emphasis.

official reserves

Indicates that the reserves are officially held and managed by a government or central bank.

government foreign exchange

Highlights government ownership of forex.

central bank forex

Specifies that the forex is held by the central bank.

national forex stores

Highlights the function of forex as national savings

FAQs

What are "forex reserves" used for?

"Forex reserves" are primarily used to back liabilities and influence monetary policy. They can be used to stabilize a country's currency, pay off international debts, and manage the balance of payments.

How do "forex reserves" impact a country's economy?

Adequate "forex reserves" can enhance investor confidence, reduce borrowing costs, and provide a buffer against economic shocks. Low reserves may signal economic vulnerability.

What's the difference between "currency reserves" and "forex reserves"?

While often used interchangeably, "currency reserves" is a broader term that can include a wider range of currencies, whereas "forex" specifically refers to foreign exchange.

How are "forex reserves" accumulated?

"Forex reserves" are typically accumulated through trade surpluses, foreign investment inflows, loans, and central bank interventions in the foreign exchange market.