RESERVES 2023: TOP 20 COUNTRIES WITH THE HIGHEST RESERVES 

Did you know that China is leading globally as the country with the highest reserves followed by Japan, Switzerland, USA, and India?

Reserves are funds that central banks exchange with one another at an international level, either in gold or in an internationally accepted currency like the US dollar (USD) or the euro.

According to the World of Statistics 2023 report, China leads the list of countries with the highest reserves (in gold and US dollars), followed by Japan, Switzerland, USA, and India in the top five, while the likes of Cuba, Estonia, Cyprus, Yemen, and South Sudan are at the bottom of the list.

Special drawing rights (SDRs), or baskets of national currencies, can also be accepted as reserves. The International Monetary Fund (IMF) created SDRs in 1969 in response to concerns about the limitations of gold and dollars as the only means of settling international accounts. SDRs can enhance international liquidity by supplementing standard reserve currencies. Member countries' governments back SDRs with their full faith and credit.

Similar to international reserves, foreign exchange reserves are also reserve assets, which a central bank holds in foreign currencies. These may include foreign banknotes, bank deposits, bonds, treasury bills, and other government securities. Colloquially, the term foreign exchange reserves may also mean gold reserves or IMF funds.

Central banks may use foreign exchange reserves to back liabilities on their own currency. In addition, foreign exchange reserves may be useful in influencing monetary policy. In general, foreign exchange reserves allow a central government more flexibility and resilience in volatile market conditions.

For example, if one or more currencies crash and/or become rapidly devalued, a central bank may balance this temporary loss with other, more highly valued and/or stable, currencies, in order to help them withstand markets shocks.

Below are the top 20 list of countries with the highest reserves as at 2023:

1. China: $3,427,931

2. Japan: $1,405,748

3. Switzerland: $1,109,821

4. USA: $716,152

5. India: $638,484

6. Russia: $632,241

7. Hong Kong: $496,867

8. Saudi Arabia: $473,889

9. South Korea: $463,281

10. Singapore: $425,097

11. Brazil: $362,210

12. Germany: $295,736

13. Thailand: $246,025

14. France: $244,280

15. Italy: $227,478

16. Israel: $212,933

17. Mexico: $207,799

18. UK: $194,181

19. Indonesia: $144,907

20. UAE: $131,116

Sources:

https://www.investopedia.com/terms/i/international-reserves.asp

https://dailypost.ng/2023/05/07/countries-with-highest-international-reserves-revealed-full-list/