Reserves

Definition

In the context of International Political Economy, particularly relating to the Bretton Woods Institutions, reserves refer to the foreign currency deposits and gold held by a country's central bank or monetary authority. These assets are used to back its liabilities, such as the national currency in circulation and various bank reserves deposited with the central bank by government or financial institutions.

Related terms

Bretton Woods Institutions: A group of institutions created at the Bretton Woods Conference in 1944, primarily including the International Monetary Fund (IMF) and the World Bank, aimed at overseeing financial and monetary order globally.

Currency Stabilization: The use of monetary policy tools by central banks to maintain a stable exchange rate for their currency against another currency or currency basket.

International Monetary Fund (IMF):

An international organization that aims to promote global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world