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International reserve assets are the sum of gold and assets held by a country for the purpose of maintaining international balance of payments and maintaining domestic stability.
It is a sign of a country’s economic strength, but also reflects the level of solvency and credit.
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The composition of international reserve assets is diverse, including gold, foreign exchange, reserve positions and so on.
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An asset to be an international reserve must have three characteristics: 1. It must be held by the monetary authority of a country and not by other institutions or economic entities; 2.
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2. It must be liquid, that is, able to transfer and transform;
3. It must be universally acceptable to all countries.
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