Foreign Exchange Reserves are assets held by a country's central bank in foreign currencies. These reserves are used to manage the country's currency value, facilitate international trade, and ensure financial stability. They typically include foreign banknotes, deposits, bonds, and other financial instruments. Countries maintain these reserves to protect against economic shocks and to support their own currency in the global market. The reserves can also be used to pay for imports and to settle international debts. Common currencies in these reserves include the U.S. dollar, euro, and Japanese yen.