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General TradingR
Reserve Currency
A currency held in large quantities by central banks and financial institutions worldwide as part of their foreign exchange reserves. The U.S. dollar is the dominant reserve currency, followed by the euro, yen, and pound sterling.
Example
“Because the U.S. dollar is the world's primary reserve currency, roughly 60% of global foreign exchange reserves are held in dollar-denominated assets, giving the Fed outsized influence on global markets.”