Foreign exchange reserves, or FX reserves, are assets held by a nation's central bank or monetary authority, primarily in reserve currencies such as the US Dollar, with smaller portions in the Euro, Japanese Yen, and Pound Sterling.
In this context, Gaurang Somaiya, forex and bullion analyst, MOFSL, said, "The central bank has accumulated these reserves to be utilised in these kinds of situations," and added that investors are on the edge at this point as there are a lot of moving parts which are impacting the market.