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General TradingR
Reserves
Assets held by central banks, typically in foreign currencies, gold, and government securities, used to back liabilities and conduct monetary policy. In banking, reserves refer to funds that commercial banks hold to meet withdrawal demands.
Example
“Japan's central bank holds over $1 trillion in foreign exchange reserves, primarily in U.S. Treasuries, which it can deploy to intervene in currency markets and stabilize the yen.”