What are foreign exchange reserves?

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Direct Answer
Foreign exchange reserves are external assets held by a country’s central bank that are readily available to meet balance-of-payments financing needs
Foreign Currency Assets (FCA)
Largest component (~85-90%). Includes US T-bonds.
Gold
Held as a safe-haven asset for diversification.
SDRs
Synthetic reserve asset created by the IMF.
Reserve Tranche Position (RTP)
India’s readily accessible quota position with the IMF.