International Reserves

International Reserves)
Basically the international reserve currency deposits is controlled by foreign central banks and monetary authorities. These assets are composed of several reserve currencies, especially euros and dollars, and to a lesser extent yen, sterling and Swiss francs.
The international reserve works as economic indicators show the resources available to a country to make purchases abroad, in which transactions are only accepted hard currency as payment. These assets are used by central banks to support the liabilities for this reason, the international reserves is an indicator of the country's ability to finance its imports, the local currency issued, or the reserves held by private banks by the government or financial institutions. Additionally there are other types of assets, especially those formed by gold reserves.