DUSHANBE, October 29, 2012, Asia-Plus — Tajikistan’s gold and currency reserves rose 22.4 million U.S. dollars in three months to October 1, 2012, reaching 878.4 million U.S. dollars, according to the National Bank of Tajikistan (NBT).
As of July 1, 2012, the country’s gold and currency reserves reportedly amounted to 856 million U.S. dollars.
Currency reserves in a strict sense are only the foreign currency deposits and bonds held by central banks and monetary authorities. These are assets of the central bank held in different reserve currencies, mostly the United States dollar.
In a flexible exchange rate system, official international reserve assets allow a central bank to purchase the domestic currency, which is considered a liability for the central bank. This action can stabilize the value of the domestic currency.
