Gold foreign exchange reserve and foreign exchange reserve and their differences
Gold reserve refers to the currency held by a country's authorities to balance the balance of payments, maintain the level or influence the exchange rate. As a financial asset, gold plays a special role in stabilizing the national economy, curbing inflation and improving international credit. Realizing the greatest possible liquidity and profitability of gold reserves is the management significance of gold reserves. As one of the main forms of international reserves, gold reserves have their own limitations in liquidity, so the problem to be considered is its moderate scale. Foreign exchange reserve, also known as foreign exchange reserve, refers to the foreign exchange part of the government's international reserve assets, that is, the creditor's rights held by a government are expressed in foreign currency. It is a currency held by national authorities and can be converted into foreign currency assets. In short, foreign exchange reserves refer to the foreign exchange accumulated by a country; It can also be said that foreign exchange reserves refer to assets denominated in foreign exchange, including cash, gold and foreign securities. Foreign exchange reserves are an important part of a country's international liquidity and play an important role in balancing international payments and stabilizing exchange rates. One of the countries' foreign exchange reserves also includes gold reserves.