Forex Reserves by Country 2025

Foreign exchange reserves (also called Forex Reserves) are assets that are held on reserve by a central bank. These assets are typically held in foreign currencies. The purpose of Forex Reserves is to influence monetary policy and back liabilities. Forex reserves can also be used for trading with other countries. An example of a Forex Reserve is the foreign money held by the US Federal Reserve Bank. Forex reserves may include foreign currencies, treasury bills, bonds and other government securities.

How Do Foreign Exchange Reserves Work?

Forex reserves can include banknotes, treasury bills and other forms of government securities. The purpose of hold foreign exchange reserves in a foreign currency is to ensure that a country’s government has money to rely on if something should happen to their national currency. If their national currency becomes insolvent or rapidly devalues, that country still has assets that can be used for necessary purchases, trading with other governments and so on.

Which Countries Have the Highest Forex Reserves?

Below are the 10 countries with the highest Forex Reserves:

What Type of Currency Is Most Often Used for Forex Reserves?

Typically, countries hold their Forex reserves in the US dollar, because it is the most commonly traded currency in the world. Other currencies that Forex reserves are sometimes held in include: the euro (EUR), Japanese yen (JPY), British pound (GBP), and the Chinese yuan (CNY).

Which Country Has the Largest Forex Reserve?

China holds the largest foreign currency reserve in the world. Most of these reserves are held in US dollars. This makes trading with other countries easier, because most of the trading that China conducts takes place using US dollars.