Ranking of Foreign Exchange Reserves by Country in 2024

Foreign exchange reserves refer to the total amount of foreign currency held by a country's central bank. These reserves are used to back liabilities, influence monetary policy, stabilize the currency, and ensure that the country can pay its external debts.

In 2024, China leads the global ranking of foreign exchange reserves with a staggering $3.582 trillion, solidifying its position as a major economic powerhouse. Japan follows as the second-largest holder with $1.827 trillion, while Switzerland ranks third with $795.4 billion. India, with reserves of $674.9 billion, and Russia, with $606.1 billion, round out the top five.

Foreign exchange reserves are critical for a country's economic stability, serving as a buffer against external shocks and helping to maintain confidence in the national currency. China's massive reserves reflect its strong trade surplus and strategic accumulation of foreign assets over the years. Japan's significant reserves are partly due to its historical trade surpluses and active currency market interventions to stabilize the yen.

Notably, the United States, despite having the largest economy globally, ranks 15th with $242.7 billion in reserves. This relatively low position highlights the unique role of the U.S. dollar as the world's primary reserve currency, reducing the need for the U.S. to hold large foreign exchange reserves. In contrast, emerging economies like India and Russia maintain substantial reserves to safeguard against currency volatility and economic uncertainties.

South Korea ranks 9th with reserves of $419.36 billion, reflecting its strong export-driven economy and cautious fiscal management. The rankings also show significant reserves held by Middle Eastern countries like Saudi Arabia (7th) and the UAE (21st), underlining the importance of oil revenues in their economic frameworks.