Reserve currency is money held by central banks or treasuries usually for international transactions. Argentina is not going to be able to purchase a Boeing 737 MAX passenger jet, for example, with its highly inflationary peso; it will have to pay with U.S. dollars, which is why Argentina keeps dollars on hand i.e., in reserve.
A second basic function is to support the value of a national currency. If the Brazilian real, for instance, plummets during an economic contraction, Brazils central bank…

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