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

“It’s the oldest kind of money. It’s the second-largest reserve currency of central banks,” he said, pointing to the dollar in the top spot, followed by gold, the euro and then the yen.

From MarketWatch • Apr. 27, 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