liquid reserves
[ˈlɪkwɪd rɪˈzɜrvz]
noun
reservas líquidas
1. Cash and highly liquid assets held by a bank, company, or government that can be quickly converted to cash to meet immediate financial obligations
The central bank maintains adequate liquid reserves to stabilize the financial system during economic downturns.
O banco central mantém reservas líquidas adequadas para estabilizar o sistema financeiro durante crises econômicas.
2. Financial assets that can be rapidly mobilized without significant loss of value to cover short-term liabilities
The company's liquid reserves decreased after the unexpected expenses.
As reservas líquidas da empresa diminuíram após as despesas inesperadas.
In Brazil, 'reservas líquidas' is a critical concept in banking regulation and corporate finance, especially since the Central Bank of Brazil (Banco Central do Brasil) requires financial institutions to maintain minimum liquid reserves. In the USA, the Federal Reserve closely monitors liquid reserves as part of monetary policy and financial system stability. This term is fundamental to understanding banking regulations under Basel III international standards.
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