Top five countries with the largest foreign exchange reserves have reserves of at least 500 billion
USD and higher and have maintained such an amount for at least a month.
China China has the largest reserve since last 14 years. The main composition of Chinese forex reserves is approximately two-thirds
USD and one-fifth
Euros with the rest made up of
Japanese Yen and the
British Pound. China was the second country to reach $500 billion and the first to reach $1 trillion in reserves. China is also the only country that reached net reserves of $2 trillion and $3 trillion. Chinese forex reserve reached over $3.993 trillion and possibly reached $4 trillion before July 2014 but there was no official figures to confirm it.
Japan As of 2024,
Japan holds one of the largest foreign exchange reserves globally—estimated between $1.2 trillion and $1.3 trillion—second only to
China. Managed by the
Bank of Japan (BOJ), these reserves are vital to the country's financial stability, supporting the yen, facilitating trade and investment, and serving as a buffer against economic shocks. Japan's reserves are highly diversified, consisting mainly of foreign currency assets such as U.S. dollars, euros, British pounds, and Australian dollars. A substantial portion is invested in U.S. Treasury securities, offering liquidity and returns. While Japan holds a relatively small proportion of gold—around 765 tons—it still considers it a traditional store of value. The country also holds
Special Drawing Rights (SDRs), an IMF-backed international reserve asset. Japan’s reserve strategy has evolved over time, influenced by a deflationary domestic environment and global economic changes. Although the U.S. dollar remains dominant in Japan’s portfolio, the BOJ has gradually diversified into other currencies, including limited exposure to the
Chinese yuan. Japan’s reserves have historically grown due to large trade surpluses, particularly with the U.S. and Asian markets. These reserves play a key role in stabilizing the yen and maintaining economic resilience amid shifting global conditions, such as changes in U.S. monetary policy or the rise of China in global trade. Overall, Japan’s foreign exchange reserves remain a cornerstone of its economic policy, aimed at ensuring liquidity, stability, and adaptability in a complex and interconnected global financial system.
Switzerland Switzerland has the third largest reserves in the world. Switzerland became the fifth country to reach $500 Billion in 2014 after Saudi Arabia and the third country to reach $1 trillion at the end of 2020. Swiss reserves are compiled in
Swiss francs. After the
2008 financial crisis, the Swiss franc has significantly appreciated against other currencies due to Switzerland's traditional perceived safety which has attracted speculative foreign capital; due to the inflows of investment income by Swiss firms, and due to the large surplus in the trade of goods. To protect the real economy from the sudden speculative appreciation of the currency, the
Swiss National Bank began intervening in the currency markets, first with an explicit target of a maximum exchange rate against the euro of 1.20CHF/EUR until 2015, and then through implicit interventions. However, the resilience of the export sector and the continued inflows of capital, has meant that the Swiss Franc has kept appreciating. As a result of this, the SNB has been unable to dispose of its large accumulated foreign exchange reserves since their sale would lead to an even greater appreciation of the currency.
India India has the world's fifth largest reserves. On 4 June 2021 reserves exceeded $600 billion for the first time and they became the fifth country after Switzerland to do so. During the
1991 Indian economic crisis country only had $5 billion of reserves left which led to
subsequent economic liberalisation. Since then the reserves have seen a 127 times increase over 30 years. In April 2024,
Foreign-exchange reserves of India hit a fresh all-time high of $642.63 including 803.58 tons of
gold reserves. Out of which 403.7 tons of
gold is held with
Bank of England and
Bank for International Settlements, and rest is held domestically. It is done to provide a sense of security and to ensure diversification of risk by spreading gold holdings across multiple locations. In May 2024, India decided to move all of its gold holding with the
Bank of England to its domestic vaults, the first batch of 100 metric tonnes of its gold was moved back to India on 31 May 2024. This decision was primarily taken due to the West's unexpected
sanctions during the Ukraine war on roughly $300 billion worth of Russian gold kept in various European countries, which caused a sense of insecurity within the Indian government and economic experts.
Russia As of 2024, Russia’s foreign exchange reserves remain a crucial element of its financial stability, comprising foreign currencies, gold, and other liquid assets managed by the
Central Bank of Russia. Prior to its 2022 invasion of
Ukraine, Russia had accumulated over $600 billion in reserves as a safeguard against economic shocks. However, following the invasion,
Western nations imposed severe sanctions, including freezing approximately $300 billion of these reserves held in the U.S. and
Europe. In response, Russia shifted its strategy to reduce reliance on Western financial systems. It increased its gold reserves—considered a secure asset not subject to the same sanctions as currencies—and diversified into non-Western currencies, particularly the
Chinese yuan. This shift aligned with Russia’s broader move to strengthen economic ties with countries in
Asia,
Africa, and the
Middle East, many of which are more open to using alternative currencies in trade. By 2024, Russia’s reserves were estimated between $570 billion and $600 billion, with a significant share in gold, yuan,
Indian rupee and other non-traditional assets. The composition of these reserves continues to fluctuate due to changes in exchange rates and asset valuations. These diversified reserves help Russia stabilize the ruble, meet foreign debt obligations, and maintain the ability to intervene in currency markets when necessary. By reducing dependence on Western assets and financial infrastructure, Russia has bolstered its economic resilience and geopolitical independence in the face of ongoing sanctions and global financial pressures. ==Currency composition of forex reserves==