The reserve currency is commonly used in international transactions and often considered a hard currency or safe-haven currency.
People who live in a country that issues a reserve currency can purchase imports and borrow across borders more cheaply than people in other nations because they don't need to exchange their currency to do so.
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A reserve currency (or anchor currency) is a currency that is held in significant quantities by governments and institutions as part of their foreign exchange reserves.
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At that point the UK was the primary exporter of manufactured goods and services and over 60% of world trade was invoiced in pound sterling.
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