13 votes

Why does the ECB hold a large foreign currency reserve?

The primary purpose of the ECB is to maintain monetary stability. One tool it can use is purchasing financial assets to maintain their price. If it decides to purchase euros, to preserve the value of ...
James K's user avatar
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9 votes

Why does the ECB hold a large foreign currency reserve?

I am wondering why the ECB needs to hold as much when other European countries hold a lot of reserve The 2nd part of your statement is true, but the first part is somewhat nonsensical in consequence. ...
Fizz's user avatar
  • 133k

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