Forex Reserves are assets held by a country’s central bank in foreign currencies, gold, and other international assets to manage the economy and currency stability.
Forex Reserves are maintained by a country’s central bank—such as the Reserve Bank of India—to ensure financial stability, support the national currency, and manage international trade payments.
These reserves act as a financial cushion during economic crises, currency fluctuations, or balance of payment issues.
"If India holds billions of dollars in foreign currency reserves, it can use them to stabilize the rupee during a currency crisis."