What a reserve is — and why every bank needs one
Central banks keep gold and foreign currency as a "safety net". How a reserve works and why KOSR is built on the same idea.
A reserve is the wealth a central bank keeps aside — gold and foreign currencies — as a guarantee for the national currency and a buffer in hard times. When a country has solid reserves, the world trusts its money more.
Backing the money
The idea of "backing" is old: how much of the money in circulation is supported by a real value kept in the vault. The greater the backing, the more credible the currency. It is a fine balance between how much money you issue and how much reserve you hold.
The reserve in Kosron
Kosron simulates exactly this mechanism: it has a central treasury with pre-minted KOSR and an educational "backing" in fictional currencies. In the stats panel you can see how much is in circulation versus the reserve — exactly what a real central bank watches, but in a safe play environment.
