Foreign Exchange Reserves - Countries (2024)

FAQs

Which country has the highest foreign currency reserve? ›

China has by far the largest foreign currency reserves with over two and a half times more than the second-largest reserve holder, Japan. When China's and Hong Kong's reserves are considered together, the total is nearly $4 trillion.

Assets which are held on reserve in foreign currencies by a central bank is known as Foreign Exchange Reserves. These reserves are used to support liabilities and to back the monetary policy. It includes any foreign money a central bank holds, such as the U.S. Federal Bank Reserve.

Treasury's Weekly Release of U.S. Foreign Exchange Reserves shows the levels of various official foreign assets (foreign exchange, SDRs, U.S. reserve position in the IMF, and gold). Only the foreign exchange and SDR components of official reserves are assets of the ESF.

Of all the countries in the world, China had, by far, the largest international reserves in 2024, with 3.59 trillion USD in reserves and foreign currency liquidity. Japan was the only other country with over a trillion U.S. dollars in reserves in early 2024, with a total of 1.3 trillion U.S. dollars.

The Swiss franc (CHF) is generally considered to be the safest currency in the world and many investors consider it to be a safe-haven asset. This is due to the neutrality of the Swiss nation, along with its strong monetary policies and low debt levels.

Countries with the smallest foreign exchange and gold reserves include Sao Tome and Principe ($63.5 million), followed by the Federated States of Micronesia ($75.1 million), Dominica ($103 million), and Samoa ($140.7 million).

The Iranian Rial is considered the world's lowest currency due to factors such as economic sanctions limiting Iran's petroleum exports, which has resulted in political instability and depreciation of the currency. 2.

Central banks throughout the world have sometimes cooperated in buying and selling official international reserves to attempt to influence exchange rates and avert financial crisis. For example, in the Baring crisis (the "Panic of 1890"), the Bank of England borrowed GBP 2 million from the Bank of France.

China has the most cash and gold reserves of any country in the world: $3.43 trillion worth, according to data from the World Bank and IMF.

How much gold does US Reserve have? ›

How much gold does the U.S. have? The U.S. gold reserves have more than 8,000 metric tons of gold, nearly as much gold as the next three countries on the list combined! Explore our world map to see which countries have the largest gold reserves in the world.

The dollar has been the world's principal reserve currency since the end of World War II and is the most widely used currency for international trade.

Prior to 1971, the US dollar was backed by gold. Today, the dollar is backed by 2 things: the government's ability to generate revenues (via debt or taxes), and its authority to compel economic participants to transact in dollars.

The highest-valued currency in the world is the Kuwaiti Dinar (KWD). Since it was first introduced in 1960, the Kuwaiti dinar has consistently ranked as the world's most valuable currency. Kuwait's economic stability, driven by its oil reserves and tax-free system, contributes to the high demand for its currency.

It's unlikely that the world will wake up one day with dollars no longer holding international appeal. Rather, in examples such as the British pound, there was a multi-decade process by which it went from the center of world economics to a second-tier currency.

However, it is recognized that the US dollar remains the strongest reserve currency.

Aliaga-Díaz: Despite a decline over the past two decades in the share of U.S. dollar-denominated securities holdings—from 71% in 1999 to 58% in 2022—the dollar remains the dominant global reserve asset by a wide margin.

The SDR is an international reserve asset. The SDR is not a currency, but its value is based on a basket of five currencies—the US dollar, the euro, the Chinese renminbi, the Japanese yen, and the British pound sterling.