Foreign exchange reserves mean a country’s total gold possession or holdings and the amount of convertible foreign currencies present in its banks. Foreign exchange reserves are also called Forex and are the major yardstick to measure any country’s fiscal power or strength.
The change in the fiscal policy of the country may also affect the foreign exchange reserves. However, it may also include the drawing rights and the IMF reserve condition.
TOP TEN COUNTRIES HAVING LARGEST FOREIGN EXCHANGE RESERVES IN THE WORLD
A country is regarded as developed or economically strong if contains the highest foreign exchange reserves with the lowest debts and foreign investment and high currency rate concerning much stability in its currency comparable to dollars. Here is the list of the top ten countries with the highest foreign exchange reserves or for ex-lets take a look at them.
1. People’s Republic of China:
The country’s total foreign reserves are at $3726 billion thus topping the list in highest Forex reserves. China. China is regarded as one of the biggest and fastest economies developing day by day. It has the second-largest of the world’s GDP and very high purchasing capacity.
Its large part of reserves is in the US treasury. Its huge reserves constitute a large amount of foreign direct investment, commendable and gigantic trade ratios, immense foreign loans, and RM B appreciation.
Japan’s foreign exchange reserves are in second place that accounting for almost $1282 billion. Japan has a very robust economy standing at third place in an economic count.
Its economy has been booming since the year 2000. It has extreme purchasing parity, and it is the part of biggest exporter’s lot as well. A few years back japan’s foreign reserves climbed to 1 trillion is a commendable increase in its reserves.
3. Saudi Arabia:
Saudi Arabia is an oil-rich country and stands in the third position with immense foreign exchange reserves of about $733.66 billion. Its oil exports are the largest in the world. Saudi Arabia has said to have gained about 730 billion dollars from oil export only.
It is also ranked among the top 20 of the world’s most powerful countries economically. It also has the world’s sixth huge gas reserve. Thus Saudi Arabia has not amazed us by standing on third with being given a huge natural resource capacity naturally.
Switzerland, the land of the Alps, has a total foreign exchange of about $545.96 billion. It has the estimated highest per adult wealth rate in the world. Its GDP is also eighth on the list in IMF’s scales.
The Swiss national bank’s impressive monetary policy is the source of stability and property in the franc. It has immense foreign currency reserves. Its tourism industry is the biggest backbone of its economy.
Russia has a total of $86.13 billion reserves. Russia has the eighth largest nominal economy according to the estimates and has the purchasing parity at the fifth largest place. The major reason for Russia’s strength is its oil and gas revenues. But in recent years Russia’s suspected involvement in Ukraine and oil embargo on Russia has caused its economy to suffer a lot.
Taiwan though claimed by China has impressive foreign exchange independently with quite impressive figures that are $424.24 billion. Taiwan is considered to be one of the Asian tigers.
It is also a member of WTO and is gaining the full benefit of that. It also has a gigantic export. Its reserves are slowly increasing and are expected to rise after negotiations between China and Taiwan on trade agreements.
Brazil has total foreign reserves of about $366.71 billion. Its gross domestic product is the seventh-largest according to statistics. Brazil in the past has been one of the fastest-growing economies in the world however nowadays its growth has been a bit slow, but it’s going up and up with further increments.
8. Republic of Korea:
The Republic of South Korea in many matters has made commendable progress. Its economic rates have been very impressive during recent years. It has grown up to be the seventh-largest exporter in the world.
In the human development index, it stands at number 12 which clearly indicates its rapid development. It has had a significant rise in foreign currency reserves in these years. The country is ready to face any economic jolts and is using the huge reserves as the buffer.
9. Hong Kong:
Hong Kong’s total reserves are $316.86 billion. It is one of the most developed and leading financial and trading centers of the world after London Singapore and New York. Hong Kong has the currency frequently traded. It has huge foreign reserves with immense trade and export. Hong Kong’s For ex-reserves have gone down from 328 to 324 but still manages to get a place in the top ten.
India’s growth in the last few years, its technological advancements, it’s its sector, and its foreign reserve rates have been applauding able. It can be considered as the rapidly growing economy of the world. It is buying out dollars to save the rupee from deprivation. The Indian economy stands at the tenth number and has the third-largest purchasing parity in the world.
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