reserve currency

American  

noun

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

---

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

---

Etymology

Origin of reserve currency

First recorded in 1965–70

Example Sentences

If the relationship between the U.S. and Europe breaks down, the U.S. dollar will remain the world’s reserve currency, “but with a lot more volatility,” said Anthony Saglimbene, chief market strategist at Ameriprise Financial, in a phone interview Tuesday.

From MarketWatch

“The Fed is the central bank for the world’s reserve currency.”

From The Wall Street Journal

The dollar’s status as reserve currency wouldn’t end immediately, Chandler said, but governments would accelerate their efforts to find alternatives.

From Barron's

The dollar’s status as reserve currency wouldn’t end immediately, Chandler said, but governments would accelerate their efforts to find alternatives.

From Barron's

And if you’re trying to measure how convincing Tillis’ statement was, well, consider the markets: The day after the Federal Reserve chair, who manages monetary policy for the country that mints the world’s reserve currency, released a hostage video, the S&P 500 was still somehow up 11 points at close on Monday.

From Slate