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I am a bit confused about foreign exchange reserves.

I was reading this website (https://www.thebalance.com/foreign-exchange-reserves-3306258#targetText=Foreign%20exchange%20reserves%20are%20the,to%20manage%20their%20currencies'%20values) which talks about the export money, banks and the central bank.

So when exporters from a country (let's say from Australia) recieve money (let's say USD), does that money go to a local bank? If so, does the local bank convert the money into AUD, or does the money go to the central bank which converts it into AUD? And does the overseas money just sit there in the reserve bank? Sorry if this is confusing.

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