The number of factors that can affect a country’s economy is already quite large, and increasing with each passing year.
With such vagaries at play, countries often turn to building foreign-exchange and gold reserves to help them ride out tumultuous periods.
Foreign exchange reserve usually refers to the amount of foreign currency — usually measured in US dollars — a country or its apex financial institution, which is often its central bank, holds in reserve.
Gold reserve is a similar tranche, except that it pertains to the yellow metal that has been purified to a standardized degree.
These come in handy when a country has to, for example, pay for imports when its own currency is devalued.
It also comes in handy in times of economic crises, because the dollar is considered a benchmark currency of sorts, and gold seems like a safe bet.
Here’s a look at which Arab country holds how much in forex and gold reserves:
