Reserve Currencies: Why are they important for an economy?

Reserve currencies are crucial to the stability of any currency. Central banks and institutions use currency reserves to achieve their economic aims. As such, foreign exchange reserves have only grown in importance over time.

There are many currencies, but why are some held in reserve?
What economic traits decide whether a currency is held in reserve?
When were reserve currencies created?
How do currencies reserves work?
What are some of the problems with reserve currencies?

Find out by watching the video!

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how tf only 377 subs wtf this channel is gold

[madoxxxx]

This channel is slept on, great content

[aa]

What if both companies simply accept each others local currencies and bypass the dollar completely?

[userpablo]

English subtitles would be great! Nice video.

[rajatdogra]

WHAT THE HELL ONLY 20 SUBS . THIS CHANNEL IS SO UNDERRATED....

[Trapboi-mbvd]

I respect people like you giving out your knowledge

[samcarter]

Isn't having reserve currency status how the US is able to sanction or embargo?

[ThePeterDislikeShow]

How can there be "not enough" precious metals for trading? You can always divide it up into more units.

[Crypto-ivkw]

The British pound wasn’t the first reserve currency nor was the US taken off in 1973, it was 1971. Not sure why I can’t find an accurate explanation of the basic concept

[katyameowmeow]

im trying to read a book about us imperialism but i have 0 background in economics so its confusing. thanks for this video.

[mullerstephan]

wait what? The convertibility of the Dollar to Gold ended in 1971, not 73

[franklinchinquee]

Once you have made a Dr. or Cr. on your reserve currency account; does it stays there or is it exchanged to the local currency?

[youbetterwalkaway]

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Its just a matter of time before you get tens of thousands of subscribers!

[marcusigo]

Watching this video after the Chinese renminbi has replaced the US Dollar as the Petrol Currency of Saudi Arabia. I’m trying to understand the implications of this. This video was great help, thank you! It seems this move by Saudi Arabia is solidifying a tripolar system. Will this destabilize the dollar?

[shanemooreJJ]

7:17 the Moto rider nearly gets side swiped

[maxpayne]

No mention of the impacts of unilateral sanctions? Or is this included in exorbitant privileges? Without addressing sanctions you invite speculation on the independence of your position.

[SkaterTE]

I keep losing on this Global Trade war game on my phone and I always get to 63% to full global dominance until exchange rate change and I lose the game due to high inflation or high unemployment. I keep forgetting to buy and sell foreign currency reserve to adjust to back to the right exchange rate.

[antifragile]

The problem with currency is that there is simply too much of it. And excess of everything is bad.