reserve currency

基軸通貨 ／ reserve-currency　—　Institutions

The currency used in common in the trade of the world.

SolidusAD 312– Joachimsthaler1525

Instead of exchanging their own currencies directly with each other, countries first go through this currency. ⚠ Whether a currency becomes a key currency is not determined by the size of the economy alone. It requires trust that it is "always convertible" and a deep market in which one can borrow in that currency.

References

• Our money — European Central Bank　The central bank's own explanation of the introduction of the euro and current banknote denominations.

The books and materials referred to in this course.