Characteristics of Currencies in the International Reserve Basket

Characteristics of Currencies in the International Reserve Basket

the two main characteristics a currency needs to have in order to be included in the International Reserve basket: liquidity and depth of its foreign exchange market. While economic stability is crucial, it's not the only factor, as shown by the examples of Norway, Switzerland, Canada, and Australia. The US dollar and euro, despite their volatility, maintain their top position due to the liquidity and depth of their markets.

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