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Financial Intermediation, International Risk Sharing, and Reserve Currencies Matteo Maggie November 2011Abstract I provide a framework for understanding the global financial architecture as an equilibrium
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The term 'reserve currencies' refers to foreign currencies held by central banks and other financial institutions as part of their foreign exchange reserves.
Central banks and financial institutions are required to file and reserve currencies.
To fill out and reserve currencies, institutions must report their holdings of foreign currencies to the regulatory authorities.
The purpose of reserve currencies is to maintain liquidity, stability, and confidence in a country's financial system.
Institutions must report the amount and type of foreign currencies held, as well as any changes in their reserve currency holdings.
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