Forex for a trader
List of countries by forex reserves

List of countries by forex reservesInternational Reserves of Countries Worldwide. International reserves are a country’s “external assets”—including foreign currency deposits and bonds held by central banks and monetary authorities, gold and SDRs. The top 10 holders of international reserves account for nearly two-thirds of the world’s total foreign currency reserves. China, with US$3.3 trillion at the end of 2011, tops the list. Twenty years ago it had only US$18 billion, and ten years ago US$146 billion. Second is Japan with US$1.3 trillion (as of December 2012.) They are the only two countries with reserves above US$1trillion. Top Ten Countries with the Largest International Reserves (in US$ Millions) Data is latest available from the International Monetary Fund (IMF) and the World Bank. International Reserves of Countries Worldwide (in US$ Millions) Data is latest available from the International Monetary Fund (IMF) and the World Bank. Darker red: higher reserves Lighter red: lower reserves. Full Chart: International Reserves of Countries Worldwide (in US$ Millions) Data is latest available from the International Monetary Fund (IMF) and the World Bank. Click on the column heading to sort the table.

Note1: See footnotes on the Official Reserve Assets and the Other Foreign Currency Assets topic views. The foreign currency portion of international reserves (IRs) is held in “reserve currencies”—mostly US dollars, but also euros, UK pounds and Japanese yen. SDRs (“special drawing rights”) are international reserve assets created by the International Monetary Fund (IMF), which member countries can add to their foreign currency reserves and gold reserves to use for payments requiring foreign exchange. The SDR’s value is set daily using a basket of four major currencies: the euro, Japanese yen, pound sterling and US dollar. Making Sense of SDRs. Ample IRs allow a government to manipulate exchange rates—usually to stabilize rates and provide a more favorable economic environment or to purchase its domestic currency to protect the country from an attack by speculators. IRs are also an important indicator of a country’s ability to repay foreign debt and are a factor in determining a country’s credit rating. In fact, the fragile global recovery in 2012, says the World Bank, and related decreasing exports by developing countries, forced some of them to dip into their international reserves to support their currencies. In general, it is believed that reserves are “adequate” if they can cover approximately three months of a country’s imports or all of the external debt maturing over the coming year. According to the same World Bank report, “the proportion of crude oil and industrial commodities exporters where international reserves were less than the critical three months of imports rose from 6.3 percent to 9.4 percent between January 2011 and September 2012 and the share of countries with less than five months of import cover rose from 12.5 percent to 25 percent.

But in the group of non-oil noncommodities dependent countries, the share of countries with less than three months of import cover rose from 14 percent to 25 percent in the same period, and those with less than five months of import cover rose from 44.4 percent of the total to 58.3 percent.” Very high reserves, while assuring in the recent financial downturn, can also have negative implications for the holder of the reserves and for the global monetary system. For one thing, by investing heavily in foreign reserves, a country invests less in its own economy—possibly spending less on education, healthcare and infrastructure—which may have otherwise offered a route to longer-term growth. For another, with most reserves held in US dollars, a stronger US dollar has been supported despite high current account deficits in the US, contributing to global economic imbalances. Foreign Exchange and Gold Reserves By Country. The foreign exchange and gold reserves are means that allow a country to repay its debts of foreign obligations while also strengthening its domestic currency. These countries hold the largest amount of such reserves. When we talk about foreign exchange reserves, we refer to a certain currency held by a government in numerous quantities to be used for particular trade purposes in global transactions. The primary foreign exchange currencies are the US dollar and the euro (the official currencies of the United States of America and of the Eurozone, respectively). Still, for different security and economic purposes, foreign exchange reserves can also be comprised of British Pounds Sterling, the Japanese Yen, and the Swiss Franc, among others. Foreign exchange reserves can also used to defend local currencies from detrimental fiscal pressures. Currently, around two-thirds of the world’s reserves of foreign currency are held in Asia, particularly among the reserves of China, Japan, Taiwan, Hong Kong, and South Korea. The Importance of these Reserves.

The gold reserves of a country are also very important for the security of its economy. This is due in large part to gold’s limited nature (e. g. it can’t be artificially produced), so the value of gold doesn’t follow the same pattern as the value of foreign exchange reserves. Therefore, the reserves of foreign exchange and gold held together by a country are much more stable than the reserves of gold or the reserves of foreign exchange held separately, as the reserves of gold can be used to fund liquidity emergencies or used as assistance to complement foreign exchange interventions. Due to such reserves’ importance in the global financial sectors, we have analyzed the countries with the largest foreign exchange and gold reserves. China boasts the largest foreign exchange and gold reserves in the world, which equals 3,091,527 US million, according to the Central Intelligence Agency World Fact Book. China is currently the second-largest economy in the world, but still remains classified as a developing country, with incomplete market reforms and a relatively low income per capita. The prevalence of poverty is another issue in China, with the country being ranked among the worst in the world for having the second largest number of poor. China’s recent rapid economic growth didn’t bring wealth to all, and rather high inequality among the population, environmental sustainability challenges due to rapid urbanization, and external perceptions are all challenges to be overcome by the Chinese moving forward. Besides, China also has to better confront the migration of its labor force as well as the demographic pressures related to an increasingly older population.

Japan, with foreign exchange and gold reserves of 1,249,847 US million is the third-largest economy in the world. The island nation also plays considerable role on the scene of the international financial community. In fact, Japan is one of the major aid donors and a primary source of global capital and credit. Important, Yet Limited, Indicators. Switzerland, with 786,172 US million, Saudi Arabia, with 487,000 US million, and Taiwan, with 446,426 US million also make up the top 5 countries with the largest foreign exchanges and gold reserves in the world. As many will note, it takes much more than foreign exchange and gold reserves to guarantee the wealth of the society. For example, this can overlook important factors such as income inequality and cost of living, and our leaders may in fact receive their rankings in large part due to their handling of finances for individuals, businesses, and governments of other countries, and thus much of the wealth indicated actually lies ‘offshore’. Indeed, these countries typically do lead the world in international banking as well. Still, these financial indicators serve as fairly effective metrics of wealth comparison between nations regardless. Mapped: The Countries With the Most Foreign Currency Reserves. In the high stakes game of international trade, holding onto a stockpile of foreign cash gives you options.

Forex reserves can help buoy the local currency or even provide much-needed insurance in the case of a national economic emergency. And when reserves are plentiful, a country can even use them to wield influence on international affairs – after all, most financial assets are simultaneously someone else’s liability. Forex Reserves by Country. Today’s infographic comes to us from HowMuch. net, and it resizes countries on a world map based on their foreign currency reserves, according to the most recent IMF data. Here is a list of the top 10 countries – China tops the list with a solid $3.2 trillion in reserves held: The first thing you may gather from this list is that major economies like the U. S. and Europe are noticeably absent, but that is because the U. S. dollar and the euro are the most common reserve currencies used in international transactions. As a result, countries such as the United States do not need to hold as many reserves. To put this all into context, here is what central banks reported in 2017 Q3 for their foreign currency holdings: Interestingly, the Japanese yen has decent acceptance as a reserve currency, but the country still holds the second highest amount of foreign currency reserves ($1.2 trillion) anyways. This is partially because Japan is an export powerhouse, sending $605 billion of exports abroad every year. Why Hold Foreign Currency Reserves? And now, a practical question: why do these countries hold foreign currency reserves in the first place? Here are seven reasons, as originally noted by The Balance: Forex reserves allow a country to maintain the value of their domestic currency at a fixed rate Countries with floating exchange rates can buy up foreign currencies or financial instruments to reduce the value of their domestic currency Forex reserves can help maintain liquidity during an economic crisis Reserves can provide confidence to foreign investors, showing that the central bank has the ability to take action to protect their investments Foreign currency reserves give a country extra insurance in meeting external payment obligations Forex reserves can be used to fund certain sectors, like building infrastructure They also provide a means of diversification, which allows central banks to reduce the risk of their overall portfolios. 10 Countries With The Biggest Forex Reserves. Foreign currency reserves are vital to a nation's economic well-being.

Without adequate reserves, an economy can grind to a halt. The country may be unable to pay for critical imports like crude oil or service its external debt. The International Monetary Fund (IMF) defines reserve assets as external assets that a country’s monetary authority can use to meet the balance of payments financing needs, use to affect currency exchange rates in currency exchange markets, and other related purposes. Most nations hold the vast majority of their foreign currency reserves in U. S. dollars and a much smaller portion in euros. A sizeable war chest of foreign currency reserves is especially handy during a currency crisis since it can be used to defend against speculative attacks on the national currency. Russia, which holds substantial foreign currency reserves, is a good example. In 2014, the United States and the European Union imposed economic sanctions on Russia for its involvement in the Ukraine conflict. Coupled with a 50 percent plunge in the price of crude oil (Russia's largest export and a key driver of its economy), these sanctions severely impacted the Russian economy. The ruble slid 40 percent against the dollar in 2014, but the outcome could have been far worse had Russia had not intervened in foreign exchange markets to prop up the ruble, expending more than $80 billion of its reserves in doing so. The ruble further strengthened throughout 2015-2018 as the political situation in Ukraine has somewhat calmed. Further potential sanctions related to the Skripal poisoning could have a dampened effect as the " the Russian economy has adapted to the post-sanctions environment and is less dependent on foreign goods or flows than a few years ago," said Robert Simpson of Insight Investments in an email to MarketWatch. International Reserves of Countries Worldwide. International reserves are a country’s “external assets”—including foreign currency deposits and bonds held by central banks and monetary authorities, gold and SDRs. The top 10 holders of international reserves account for nearly two-thirds of the world’s total foreign currency reserves. China, with US$3.3 trillion at the end of 2011, tops the list.

Twenty years ago it had only US$18 billion, and ten years ago US$146 billion. Second is Japan with US$1.3 trillion (as of December 2012.) They are the only two countries with reserves above US$1trillion. Top Ten Countries with the Largest International Reserves (in US$ Millions) Data is latest available from the International Monetary Fund (IMF) and the World Bank. International Reserves of Countries Worldwide (in US$ Millions) Data is latest available from the International Monetary Fund (IMF) and the World Bank. Darker red: higher reserves Lighter red: lower reserves. Full Chart: International Reserves of Countries Worldwide (in US$ Millions) Data is latest available from the International Monetary Fund (IMF) and the World Bank. Click on the column heading to sort the table. Note1: See footnotes on the Official Reserve Assets and the Other Foreign Currency Assets topic views. The foreign currency portion of international reserves (IRs) is held in “reserve currencies”—mostly US dollars, but also euros, UK pounds and Japanese yen. SDRs (“special drawing rights”) are international reserve assets created by the International Monetary Fund (IMF), which member countries can add to their foreign currency reserves and gold reserves to use for payments requiring foreign exchange. The SDR’s value is set daily using a basket of four major currencies: the euro, Japanese yen, pound sterling and US dollar. Making Sense of SDRs. Ample IRs allow a government to manipulate exchange rates—usually to stabilize rates and provide a more favorable economic environment or to purchase its domestic currency to protect the country from an attack by speculators. IRs are also an important indicator of a country’s ability to repay foreign debt and are a factor in determining a country’s credit rating. In fact, the fragile global recovery in 2012, says the World Bank, and related decreasing exports by developing countries, forced some of them to dip into their international reserves to support their currencies.

In general, it is believed that reserves are “adequate” if they can cover approximately three months of a country’s imports or all of the external debt maturing over the coming year. According to the same World Bank report, “the proportion of crude oil and industrial commodities exporters where international reserves were less than the critical three months of imports rose from 6.3 percent to 9.4 percent between January 2011 and September 2012 and the share of countries with less than five months of import cover rose from 12.5 percent to 25 percent. But in the group of non-oil noncommodities dependent countries, the share of countries with less than three months of import cover rose from 14 percent to 25 percent in the same period, and those with less than five months of import cover rose from 44.4 percent of the total to 58.3 percent.” Very high reserves, while assuring in the recent financial downturn, can also have negative implications for the holder of the reserves and for the global monetary system. For one thing, by investing heavily in foreign reserves, a country invests less in its own economy—possibly spending less on education, healthcare and infrastructure—which may have otherwise offered a route to longer-term growth. For another, with most reserves held in US dollars, a stronger US dollar has been supported despite high current account deficits in the US, contributing to global economic imbalances. More info on List of countries by foreign exchange reserves. List of countries by foreign exchange reserves: Wikis. From Wikipedia, the free encyclopedia. Foreign exchange reserves (also called Forex reserves ) in a strict sense are only the foreign currency deposits held by central banks and monetary authorities. However, the term foreign exchange reserves in popular usage (such as this list) commonly includes foreign exchange and gold, SDRs and IMF reserve position as this total figure is more readily available, however it is accurately deemed as official reserves or international reserves . The list excludes currency swaps conducted by central banks.

These are assets of the central banks which are held in different reserve currencies such as the dollar, euro, yen and pound, and which are used to back its liabilities, e. g. the local currency issued, and the various bank reserves deposited with the central bank, by the government or financial institutions. Before the end of the gold standard, gold was the preferred reserve. Some nations are converting foreign exchange reserves into sovereign wealth funds, which can rival foreign exchange reserves in size. This is a list of countries and territories by foreign exchange reserves in US dollar equivalence. Some nations have multiple monetary authorities, counted separately, such as the People's Republic of China, which has three (mainland China, Hong Kong, and Macau). Exchange rate fluctuations can have significant impact on these numbers. While most nations report in US dollars, a few nations in Eastern Europe report solely in Euros. List of states by foreign exchange reserves. For consistency, forward currency swap contracts are not included in this list until they mature, figures that include them may be higher or lower than those listed here . IMF or other outstanding loans are not shown here, and if accounted for many nations would list lower. Foreign Exchange and Gold Reserves By Country. The foreign exchange and gold reserves are means that allow a country to repay its debts of foreign obligations while also strengthening its domestic currency. These countries hold the largest amount of such reserves. When we talk about foreign exchange reserves, we refer to a certain currency held by a government in numerous quantities to be used for particular trade purposes in global transactions.

The primary foreign exchange currencies are the US dollar and the euro (the official currencies of the United States of America and of the Eurozone, respectively). Still, for different security and economic purposes, foreign exchange reserves can also be comprised of British Pounds Sterling, the Japanese Yen, and the Swiss Franc, among others. Foreign exchange reserves can also used to defend local currencies from detrimental fiscal pressures. Currently, around two-thirds of the world’s reserves of foreign currency are held in Asia, particularly among the reserves of China, Japan, Taiwan, Hong Kong, and South Korea. The Importance of these Reserves. The gold reserves of a country are also very important for the security of its economy. This is due in large part to gold’s limited nature (e. g. it can’t be artificially produced), so the value of gold doesn’t follow the same pattern as the value of foreign exchange reserves. Therefore, the reserves of foreign exchange and gold held together by a country are much more stable than the reserves of gold or the reserves of foreign exchange held separately, as the reserves of gold can be used to fund liquidity emergencies or used as assistance to complement foreign exchange interventions. Due to such reserves’ importance in the global financial sectors, we have analyzed the countries with the largest foreign exchange and gold reserves.

China boasts the largest foreign exchange and gold reserves in the world, which equals 3,091,527 US million, according to the Central Intelligence Agency World Fact Book. China is currently the second-largest economy in the world, but still remains classified as a developing country, with incomplete market reforms and a relatively low income per capita. The prevalence of poverty is another issue in China, with the country being ranked among the worst in the world for having the second largest number of poor. China’s recent rapid economic growth didn’t bring wealth to all, and rather high inequality among the population, environmental sustainability challenges due to rapid urbanization, and external perceptions are all challenges to be overcome by the Chinese moving forward. Besides, China also has to better confront the migration of its labor force as well as the demographic pressures related to an increasingly older population. Japan, with foreign exchange and gold reserves of 1,249,847 US million is the third-largest economy in the world. The island nation also plays considerable role on the scene of the international financial community. In fact, Japan is one of the major aid donors and a primary source of global capital and credit. Important, Yet Limited, Indicators. Switzerland, with 786,172 US million, Saudi Arabia, with 487,000 US million, and Taiwan, with 446,426 US million also make up the top 5 countries with the largest foreign exchanges and gold reserves in the world.

As many will note, it takes much more than foreign exchange and gold reserves to guarantee the wealth of the society. For example, this can overlook important factors such as income inequality and cost of living, and our leaders may in fact receive their rankings in large part due to their handling of finances for individuals, businesses, and governments of other countries, and thus much of the wealth indicated actually lies ‘offshore’. Indeed, these countries typically do lead the world in international banking as well. Still, these financial indicators serve as fairly effective metrics of wealth comparison between nations regardless. 20 countries with the largest foreign exchange reserves. F oreign exchange reserves include a country's gold holdings and convertible foreign currencies held in its banks, including special drawing rights and exchange reserve balances, with the International Monetary Fund. Forex are often taken as a yardstick to gauge a country's financial strength. The quantity of foreign exchange reserves can change as and when a country's central bank (Reserve Bank in case of India) implements the monetary policy. India is among the top 10 nations in terms of foreign exchange reserves. The list is topped by China. 1. People’s Republic of China.

As of September 2013, the country’s foreign exchange reserve stood at $3726 billion. China has become one of the world's fastest-growing major economies. As of 2013, it is the world's second-largest economy by both nominal total GDP and purchasing power parity. Click NEXT to find out the other 19 nations with the largest foreign exchange reserves. . . 20 countries with the largest foreign exchange reserves. 2. Japan. A s of April 2014, the country’s foreign exchange reserve stood at $1282 billion. Japan has the world's third-largest economy by nominal gross domestic product and the world's fourth-largest economy by purchasing power parity. Click NEXT to read further. . . 20 countries with the largest foreign exchange reserves. 3. Saudi Arabia. A s of March 2014, the country’s foreign exchange reserve stood at $733.66 billion.

The country is the world's largest oil exporter. It figured in the National Power Index list of 20 most powerful countries. The country has the world's second largest oil reserves and the world's sixth largest natural gas reserves. Click NEXT to read further. . . 20 countries with the largest foreign exchange reserves. 4. Switzerland. A s of March 2014, the country’s foreign exchange reserve stood at $545.96 billion. According to Credit Suisse, Switzerland has the highest nominal wealth per adult in the world. The country also has the eighth-highest per capita gross domestic product on the International Monetary Fund list. Click NEXT to read further. . . 20 countries with the largest foreign exchange reserves. 5. Russia. A s of March 2014, the country’s foreign exchange reserve stood at $486.13 billion. The Russian economy is the eighth largest by nominal gross domestic product and fifth largest by purchasing power parity. Click NEXT to read further.

. . 20 countries with the largest foreign exchange reserves. 6. Taiwan. A s of March 2014, the country’s foreign exchange reserve stood at $424.24 billion. Taiwan is one of the Four Asian Tigers and a member of the World Trade Organization and Asia-Pacific Economic Cooperation. Click NEXT to read further. . . 20 countries with the largest foreign exchange reserves. 7. Brazil. A s of April 2014, the country’s foreign exchange reserve stood at $366.71 billion. The Brazilian economy is the world's seventh largest by nominal gross domestic product. A member of the Brazil, Russia, India, China group, Brazil has one of the world's fastest growing major economies. Click NEXT to read further. . . 20 countries with the largest foreign exchange reserves. 8. Republic of Korea. A s of April 2014, the country’s foreign exchange reserve stood at $355.84 billion.

South Korea ranked 12th in the Human Development Index. The country is the world's seventh largest exporter. Click NEXT to read further. . . 20 countries with the largest foreign exchange reserves. 9. Hong Kong. A s of March 2014, the country’s foreign exchange reserve stood at $316.86 billion. Hong Kong is the third most important leading international financial centre, after London and New York City. Hong Kong dollar is the eighth most traded currency. Click NEXT to read further. . . 20 countries with the largest foreign exchange reserves. 10. India.

A s of June 2014, the country’s foreign exchange reserve stood at $312.58 billion. The Indian economy is the world's tenth largest by nominal gross domestic product and third-largest by purchasing power parity. Click NEXT to read further. . . 20 countries with the largest foreign exchange reserves. 11. Singapore. A s of April 2014, the country’s foreign exchange reserve stood at $275.23 billion. Singapore is one of the world's major commercial hubs. It has the world’s fourth-biggest financial centre and one of the five busiest ports. Click NEXT to read further. . . 20 countries with the largest foreign exchange reserves. 12. Germany. A s of March 2014, the country’s foreign exchange reserve stood at $207.66 billion. Germany has the world's fourth-largest economy by nominal GDP and the fifth-largest by purchasing power parity. Click NEXT to read further.

. . 20 countries with the largest foreign exchange reserves. 13. Algeria. A s of December 2013, the country’s foreign exchange reserve stood at $192.5 billion. According to Organization of the Petroleum Exporting Countries, Algeria has 17th largest reserves of oil in the world. Energy exports are the backbone of the economy. Click NEXT to read further. . . 20 countries with the largest foreign exchange reserves. 14. Mexico. A s of March 2014, the country’s foreign exchange reserve stood at $185.46 billion. Mexico has one of the world's largest economies. It is the tenth largest oil producer and the largest silver producer in the world. Click NEXT to read further. . . 20 countries with the largest foreign exchange reserves. 15. Thailand.

A s of April 2014, the country’s foreign exchange reserve stood at $168.88 billion. Thailand ranks second in the best quality of life in the Association of Southeast Asian Nation. Click NEXT to read further. . . 20 countries with the largest foreign exchange reserves. 16. France. A s of April 2014, the country’s foreign exchange reserve stood at $154.83 billion. France has the world's fifth-largest economy by nominal gross domestic product and seventh-largest by purchasing power parity. Click NEXT to read further. . . 20 countries with the largest foreign exchange reserves. 17. Italy. A s of March 2014, the country’s foreign exchange reserve stood at $152.68 billion. Italy has a market economy characterised by high per capita GDP and low unemployment rates.

Click NEXT to read further. . . 20 countries with the largest foreign exchange reserves. 18. United States of America. A s of June 2014, the country’s foreign exchange reserve stood at $143.77 billion. The country has the world's largest national economy, with an estimated gross domestic product of $16.8 trillion in 2013. Click NEXT to read further. . . 20 countries with the largest foreign exchange reserves. 19. United Kingdom. A s of March 2014, the country’s foreign exchange reserve stood at $141.1 billion. UK is the sixth-largest economy in the world at present and the third-largest in Europe after Germany and France.

Click NEXT to read further. . . 20 countries with the largest foreign exchange reserves. 20. Malaysia. A s of April 2014, the country’s foreign exchange reserve stood at $131.16 billion. Today, Malaysia has a newly industrialised market economy. The country’s economy is third largest in Southeast Asia and 29th largest in the world. List of countries by forex reserves. Foreign exchange reserves (also called Forex reserves ) in a strict sense are only the foreign currency deposits held by central banks and monetary authorities. However, the term foreign exchange reserves in popular usage (such as this list) commonly includes foreign exchange and gold, SDRs and IMF reserve position as this total figure is more readily available, however it is accurately deemed as official reserves or international reserves .

The list excludes currency swaps conducted by central banks. These are assets of the central banks which are held in different reserve currencies such as the dollar, euro, yen and pound, and which are used to back its liabilities, e. g. the local currency issued, and the various bank reserves deposited with the central bank, by the government or financial institutions. Before the end of the gold standard, gold was the preferred reserve. Some nations are converting foreign exchange reserves into sovereign wealth funds, which can rival foreign exchange reserves in size. This is a list of countries and territories by foreign exchange reserves in US dollar equivalence. Some nations have multiple monetary authorities, counted separately, such as the People's Republic of China , which has three (mainland China , Hong Kong, and Macau ). Exchange rate fluctuations can have significant impact on these numbers. While most nations report in US dollars, a few nations in Eastern Europe report solely in Euros. List : Countries with Largest Forex Reserves in the World 2018. Published June 29, 2018 - 07:03 Jkt. Foreign exchange (or forex) reserves are a key indicator of economic health. They provide policymakers with a tool to control inflation, ensure the continual flow of imported goods into the country, and generally provide a sense of security in uncertain economic climates. With the U. S. national debt recently topping an eye-popping $21T, we started thinking about how the U. S. stacks up against the rest of the world in forex reserves.

We got our data from the International Monetary Fund (IMF) for Q1 2018. Top 10 Countries with the Biggest Forex Reserves. 3. Switzerland: $785.7B. 4. Saudi Arabia: $486.6B. 5. Hong Kong: $437.5B. 7. South Korea: $385.3B. 10. Singapore: $279.8B. Here's the chart for Asia Pacific countries. China leads by a longshot with $3,162B, almost three times as much as second place Japan at $1,205B. It is hard to imagine just how much money China has stashed away—it’s enough to power the entire $2,651B economy of the United Kingdomfor an entire year and then some, royal weddings included. Switzerland stands out in third place with $785.7B as the only European country in the top 10. We can see the same top-heavy trend when looking at which continents have the highest reserves. Asia clearly leads the way on the right side of the map, second to the green countries from Europe . Every other continent is comparably tiny. Take a look at North and South America compared to Asia.

It’s not even close. And where is the entire continent of Africa in our visualization? Since howmuc. net excluded countries with less than $5B in reserves, only four orange countries made it onto the map. What does this say about the world’s economies? Countries that have a lot of exports tend to stockpile the most forex reserves. Think about all the goods that flow out of China, consumer electronics from Japan, and oil from Saudi Arabia. These places dominate in particular industries or sectors, making them a magnate for forex reserves. Having a large stash of foreign currency means that countries like China and Japan can better handle unexpected economic surprises. The United States only has $44B in forex reserves. That’s not necessarily a cause for alarm because many export-dependent countries rely on America to purchase their goods. That’s how they ended up with such large caches in the first place. Here’s to hoping that current trends continue long into the future.



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