 For example, suppose India decided to fix its currency to the dollar at the exchange rate E₹/$ = 45.0.To maintain this fixed exchange rate, the Reserve Bank of India would need to hold dollars on reserve and stand ready to exchange rupees for dollars (or dollars for rupees) on demand at the specified exchange rate.In the gold standard the central bank held gold to exchange for "its own currency", with a reserve currency standard it must hold a stock of the "reserve currency".