Reserve assets are financial assets held by a country's central bank or monetary authority to support its currency and manage its economy. These assets typically include foreign currencies, gold, and special drawing rights (SDRs) from the International Monetary Fund (IMF). They serve as a buffer against economic shocks and help maintain confidence in the national currency. Central banks use reserve assets to intervene in foreign exchange markets, stabilize their currency, and ensure that they can meet international payment obligations. A healthy level of reserve assets is crucial for maintaining economic stability and fostering trust among investors and trading partners.