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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