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Mapped: The Countries With the Most Foreign Currency Reserves

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Mapped: The Countries With the Most Foreign Currency Reserves

The Countries With the Most Foreign Currency Reserves

In the high stakes game of international trade, holding onto a stockpile of foreign cash gives you options.

Forex reserves can help buoy the local currency or even provide much-needed insurance in the case of a national economic emergency. And when reserves are plentiful, a country can even use them to wield influence on international affairs – after all, most financial assets are simultaneously someone else’s liability.

Forex Reserves by Country

Today’s infographic comes to us from HowMuch.net, and it resizes countries on a world map based on their foreign currency reserves, according to the most recent IMF data.

Here is a list of the top 10 countries – China tops the list with a solid $3.2 trillion in reserves held:

RankCountryForex Reserves ($B)
#1China$3,161.5
#2Japan$1,204.7
#3Switzerland$785.7
#4Saudi Arabia$486.6
#5Hong Kong (China)$437.5
#6India$397.2
#7South Korea$385.3
#8Brazil$358.3
#9Russia$356.5
#10Singapore$279.8

The first thing you may gather from this list is that major economies like the U.S. and Europe are noticeably absent, but that is because the U.S. dollar and the euro are the most common reserve currencies used in international transactions. As a result, countries such as the United States do not need to hold as many reserves.

To put this all into context, here is what central banks reported in 2017 Q3 for their foreign currency holdings:

RankReserve CurrencyGlobal Holdings
#1U.S. Dollar63.5%
#2Euro20.0%
#3Japanese Yen4.5%
#4British Pound4.5%
#5Canadian Dollar2.0%
#6Aussie Dollar1.8%
#7Chinese Yuan1.1%
n/aOther2.6%

Interestingly, the Japanese yen has decent acceptance as a reserve currency, but the country still holds the second highest amount of foreign currency reserves ($1.2 trillion) anyways. This is partially because Japan is an export powerhouse, sending $605 billion of exports abroad every year.

Why Hold Foreign Currency Reserves?

And now, a practical question: why do these countries hold foreign currency reserves in the first place?

Here are seven reasons, as originally noted by The Balance:

  1. Forex reserves allow a country to maintain the value of their domestic currency at a fixed rate
  2. Countries with floating exchange rates can buy up foreign currencies or financial instruments to reduce the value of their domestic currency
  3. Forex reserves can help maintain liquidity during an economic crisis
  4. Reserves can provide confidence to foreign investors, showing that the central bank has the ability to take action to protect their investments
  5. Foreign currency reserves give a country extra insurance in meeting external payment obligations
  6. Forex reserves can be used to fund certain sectors, like building infrastructure
  7. They also provide a means of diversification, which allows central banks to reduce the risk of their overall portfolios

For a related animation, see the history of how the U.S. dollar spread across the world.

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Demographics

Mapped: Population Growth by Region (1900-2050F)

In this visualization, we map the populations of major regions at three different points in time: 1900, 2000, and 2050 (forecasted).

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Map of Population Growth by Region

Mapping Population Growth by Region

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

In fewer than 50 years, the world population has doubled in size, jumping from 4 to 8 billion.

In this visualization, we map the populations of major regions at three different points in time: 1900, 2000, and 2050 (forecasted). Figures come from Our World in Data as of March 2023, using the United Nations medium-fertility scenario.

 

 

Population by Continent (1900-2050F)

Asia was the biggest driver of global population growth over the course of the 20th century. In fact, the continent’s population grew by 2.8 billion people from 1900 to 2000, compared to just 680 million from the second on our list, Africa.

Region190020002050F
Asia931,021,4183,735,089,7755,291,555,919
Africa138,752,199818,952,3742,485,135,689
Europe406,610,221727,917,165704,398,730
North America104,231,973486,364,446679,488,449
South America41,330,704349,634,344491,078,697
Oceania5,936,61531,223,13357,834,753
World 🌐1,627,883,1306,149,181,2379,709,492,237

China was the main source of Asia’s population expansion, though its population growth has slowed in recent years. That’s why in 2023, India surpassed China to become the world’s most populous country.

Southeast Asian countries like the Philippines and Indonesia have also been big drivers of Asia’s population boom to this point.

The Future: Africa to Hit 2.5 Billion by 2050

Under the UN’s medium-fertility scenario (all countries converge at a birthrate of 1.85 children per woman by 2050), Africa will solidify its place as the world’s second most populous region.

Three countries—Nigeria, Ethiopia, and Egypt—will account for roughly 30% of that 2.5 billion population figure.

Meanwhile, both North America and South America are expected to see a slowdown in population growth, while Europe is the only region that will shrink by 2050.

A century ago, Europe’s population was close to 30% of the world total. Today, that figure stands at less than 10%.

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