Monday, May 28, 2018

China has the largest forex reserves in the world — here's how other countries measure up

Feedburner
China has the largest forex reserves in the world — here's how other countries measure up

china hong kong currency exchangeAP Images

Forex reserves can help a country buoy local currency or even provide insurance in the case of a national economic emergency. China tops other countries in foreign reserves with $3.2 trillion held.  The dollar and the euro are the most common reserve currencies used in international transactions, so the US and EU don't need to hold a lot of 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.

See the rest of the story at Business Insider

NOW WATCH: What will probably happen with the North and South Korean peace treaty

See Also:

Here's how immigration in the US has changed over the past 2 centuriesHere's how much energy Americans used last yearHere is Michael Jordan's 56,000-square foot house in Chicago and why it is still on the market after 6 years

SEE ALSO: The most and least expensive places to live in America