Exchange Stabilization Fund

The Exchange Stabilization Fund (ESF) is an emergency reserve fund of the United States Treasury Department, normally used for foreign exchange intervention.^[1] This arrangement (as opposed to having the central bank intervene directly) allows the US government to influence currency exchange rates without directly affecting domestic money supply.

The fund's net position at the end of 2023 was $39 billion. Its total assets were $213 billion, the difference being largely attributable to $155 billion in Special Drawing Rights (SDRs) from the International Monetary Fund and its administration of COVID-19 pandemic recovery loans on behalf of the Treasury.^[2]