This country has maximum reserve of dollar, it is not US, India, Japan, Russia, UK, name is….
When it comes to foreign exchange reserves, the global leader is assumed as the United States. However, China tops the list with the largest reserves of US dollars. It can help the country to strengthen its economic situation and also global influence.
China Forex Reserves
As per the latest data, China holds the largest foreign exchange reserves in the world, totaling around $3.6 trillion, and a major portion of this is in US dollars. These reserves are primarily due to China’s massive trade surplus. As the country exports far more than it imports, and earns a major portion of foreign currency, especially American dollars.
China uses these reserves to stabilize its own currency, the Yuan. Then invest in US Treasury bonds and cushion its economy during global financial instability.
Japan: Second-Largest Reserve Holder
After China, the country in 2nd position is Japan, with reserves around $1.3 to $1.4 trillion. Japan’s reserves are similarly held in major global currencies like the US dollar and are used to manage exchange rates, to maintain investor confidence and also to support trade and capital flows.
Japan’s economic model, built around high exports, has helped it to gain more reserves.
Switzerland At Third
Switzerland holds the third-largest foreign exchange reserves, reported to be around $795 billion to over $1 trillion, depending on currency valuation changes. The Swiss National Bank has accumulated these reserves to prevent the Swiss Franc from becoming too strong, which could harm its export-driven economy.
India At Fourth Globally
India ranks fourth in the world with foreign exchange reserves between $650 billion and $675 billion, as of recent estimates. A large chunk of these reserves is in US dollars, held by the Reserve Bank of India (RBI). These reserves provide a buffer against global economic shocks, support the rupee in times of volatility and also help manage inflation and import bills.
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