Table of Contents

Top 10 Countries With the Biggest Forex Reserves

By

Elvis Picardo

Updated January 30, 2025

Reviewed by Akhilesh Ganti

Fact checked by

Suzanne Kvilhaug

Abstract mirror building texture — Kanchisa Thitisukthanapong / Getty Images

Foreign currency reserves are vital to a nation’s economic well-being. Without adequate reserves, a country may be unable to pay for critical imports, such as crude oil, or service its external debt. Inadequate reserves can also limit a central bank’s available responses to an economic crisis.

Foreign currency reserves can also be used to control exchange rates, which in turn affects global trade. If a currency, whether fixed or floating, begins to deviate from its desired rate with a foreign currency, the central bank can buy and sell reserves as needed to restore the intended exchange rate.

Key Takeaways

Foreign exchange reserves are assets denominated in a foreign currency that are held by a nation’s government or central bank.
These reserves may include foreign currencies, bonds, treasury bills, and other government securities.
Most foreign exchange reserves are held in U.S. dollars, with China being the largest foreign currency holder in the world.
The top foreign reserve holders tend to be countries in Asia and South East Asia.
The United States held a relatively small amount of reserves compared to the top 10 holders.

Other Types of Reserves

Foreign currencies are not the only reserves at a government’s disposal. The International Monetary Fund (IMF) defines foreign reserves as external assets that a country’s monetary authority can use to meet balance of payment-financing needs, to affect exchange rates in currency exchange markets, and to use for other, related purposes.

These other assets can include:

However, foreign currency is the most abundant asset in most foreign reserves, and most nations hold the vast majority of their foreign currency reserves in U.S. dollars, followed by euros and the Japanese yen.

Countries With the Largest Foreign Reserves

Here are the 10 countries with the largest foreign currency reserve assets. All figures are as of November 2024 unless otherwise stated.

Rank	Country	Foreign Currency Reserves (USD billions)
1	China	$3,682
2	Japan	$1,278
3	Switzerland	$927
4	India	$662
5	Russia	$616
6	Hong Kong	$463
7	Saudi Arabia	$432 (February 2024)
8	South Korea	$415
9	Germany	$387
10	Singapore	$377

Sources: IMF and Central Bank of the Republic of China (Taiwan)

India's Foreign Reserves

To highlight one of the top 10 above, India held $662 billion in foreign currency reserve assets as of November 2024. Its central bank, the Reserve Bank of India, intervenes in the foreign exchange market to stem excess volatility in its domestic currency, the rupee.

Special Considerations

China and Hong Kong

The above table lists China’s and Hong Kong’s reserves separately. 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 more than $4 trillion. Asian and Southeast Asian nations dominate foreign currency reserves, accounting for seven of the top 10.

Russia

Another important point to note is that Russia’s foreign exchange reserves totaled over $600 billion as of November 2024. However, economic sanctions imposed by the U.S., the European Union (EU), and other nations in response to Russia’s invasion of Ukraine in February 2022 have rendered most of those reserves inaccessible to the central bank.

U.S. and U.K.

U.S. foreign reserves, including foreign currencies of mostly euros and yen, were valued at $241 billion in November 2024. The United Kingdom, which also did not make the top 10 list, held $223 billion in foreign reserves as of the same month.

Why Do Countries Hold Foreign Reserves?

Countries hold foreign reserves for several reasons, including balancing international trade, intervening in the currency markets to stabilize the domestic currency (for liquidity in times of crisis), and providing confidence for foreign and domestic investors.

Why Are China’s Foreign Reserves So Large?

China is a net exporter of goods, with much of that foreign trade being conducted in U.S. dollars. Chinese companies thus receive U.S. dollars but must convert them into Chinese currency via the banking system. The banks then reconcile these with the central bank. The central bank then uses the dollars to purchase U.S. government securities, which are considered to be among the safest investments on the planet.

Why Might a Country Run Out of Foreign Reserves?

A country might draw down its foreign reserves if it needs to sell them in order to stabilize its currency or prop up its economy, especially if the domestic currency falters.

The Bottom Line

Maintaining foreign currency reserves is vital to the economic health of a nation. The 10 nations with the largest foreign currency reserves had combined reserve assets of approximately $9.2 trillion as of November 2024, about 45% of which was accounted for by China and Hong Kong.

Article Sources

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

International Monetary Fund. “IMF Data: Currency Composition of Official Foreign Exchange Reserves (COFER).”
International Monetary Fund Data. “Internal Reserves and Foreign Currency Liquidity.”
Central Bank of the Republic of China (Taiwan). “Foreign Exchange Reserves.”
Reuters. “India’s Foreign Exchange Reserves Hit Record High.”
Financial Times. “Russia’s FX Reserves Slip from Its Grasp.”
Board of Governors of the Federal Reserve System. "International Summary Statistics: U.S. Reserve Assets."

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