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

See Examples For:

reserve currency

For decades, a strong U.S. dollar has been the bedrock of the global financial system, powering trade activities and serving as the world’s primary default reserve currency.

From MarketWatch ● Jul. 29, 2026

“We’ve got sluggish growth, high bond yields, bond markets are watching very closely and we don’t have a major reserve currency like the U.S.,” says Michael Saunders, an adviser at Oxford Economics, a consulting firm.

From The Wall Street Journal ● Jul. 17, 2026

This would have implications for Japan’s status as a reserve currency regime and for its creditworthiness.

From MarketWatch ● Jun. 30, 2026

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

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