Foreign currency reserves are vital to a nation's economic well-being. Without adequate reserves, an economy can grind to a halt. The country may be unable to pay for critical imports like crude oil, or service its external debt. Most nations hold the vast majority of their foreign currency reserves in U. A sizeable war chest of foreign currency reserves is especially handy during a currency crisis , since it can be used to defend against speculative attacks on the national currency.
Russia, which holds substantial foreign currency reserves, is a good example. In , the United States and the European Union imposed economic sanctions on Russia for its involvement in the Ukraine conflict. Coupled with a 50 percent plunge in the price of crude oil Russia's largest export and a key driver of its economy , these sanctions severely impacted the Russian economy.
The ruble further strengthened throughout as the political situation in Ukrain has somewhat calmed. Here are the ten countries with the largest foreign currency reserve assets as of April All reserve assets are given in billions of U.
China has by far the largest foreign currency reserves with over two and half times more than the second largest reserve holder, Japan.
Asian nations dominate the ranks of the nations with the largest foreign currency reserves, accounting for six of the top ten. Maintaining foreign currency reserves is vital to the economic health of a nation. Dictionary Term Of The Day.
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If you lease a car for three years, A target hash is a number that a hashed block header must be less than or equal to in order for a new block to be awarded. Payout ratio is the proportion of earnings paid out as dividends to shareholders, typically expressed as a percentage. The value of a bond at maturity, or of an asset at a specified, future valuation date, taking into account factors such as No thanks, I prefer not making money. Get Free Newsletters Newsletters.More...