reserve currency

American  

noun

1. any currency, as the U.S. dollar, used as a medium to settle international debts.

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reserve currency British  

noun

1. foreign currency that is acceptable as a medium of international payments and that is therefore held in reserve by many countries

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Etymology

Origin of reserve currency

First recorded in 1965–70

Example Sentences

That said, the U.S. has more room to borrow than those countries because it controls the world’s reserve currency, and because of Treasury debt’s position as a haven for investors.

From The Wall Street Journal • Apr. 30, 2026

What do you say to those who push back against the idea of a capital war, noting there is no alternative to the U.S. dollar as a reserve currency?

From Barron's • Feb. 6, 2026

Weakness reflected in the dollar’s January slide may remain, as investors’ confidence in the world’s reserve currency may be somewhat shaken.

From MarketWatch • Feb. 2, 2026

"Investors and global central banks have... favoured gold as their reserve currency of choice, which they believe insulates them from US policy dependence," says Wall.

From BBC • Jan. 30, 2026

As a basket of European currencies, the ECU serves as a reserve currency in Europe and probably beyond.

From The Civilization of Illiteracy by Nadin, Mihai