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

The U.S. also benefits from the dollar’s role as the world’s reserve currency, which gives it far more fiscal flexibility than most countries.

From Barron's

While the franc hasn’t gained much against the dollar since the Iran attack, given the dollar’s role as a global reserve currency, it has on the euro, which weighs more severely on Switzerland’s export businesses.

From The Wall Street Journal

“The dollar typically benefits in wartime situations because it is the world’s reserve currency,” Commerzbank foreign-exchange analyst Thu Lan Nguyen said in a note.

From The Wall Street Journal

Reserve currency status refers to a currency that is held in large quantities around the world and used to conduct international trade, settle transactions and stabilize the economies of other countries.

From MarketWatch

Nonetheless, extensive capital controls in China and the country’s high household savings rate make it hard for the yuan to become a reserve currency contender unless Beijing undertakes extensive structural reforms.

From Barron's