Official reserve assets

Describe the official reserve assets and some of its important components.

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Official reserve assets are those financial assets which may be used as an international means of payments. Presently, components of the official reserve assets are as follows: 

a) Foreign exchanges, 

b) Gold,

c) Special drawing rights (SDRs), and 

d) Reserve positions with the IMF. 

Foreign exchanges are by far the main official reserves.

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