China reports highest FX reserves, followed by Japan and Switzerland

Rick Steves

China exhibited the lowest volatility in terms of the rate of change, with the lowest maximum decrease recorded at approximately -4.12%. This stability is particularly noteworthy against the backdrop of a turbulent global economic scene.

In a global environment marked by escalating inflation, geopolitical discord, and a plethora of economic hurdles, the significance of foreign currency reserves in maintaining a nation’s economic stability cannot be overstated.

A recent analysis commissioned by, examining the foreign exchange reserves of 94 countries from Q1 2019 to Q2 2023, sheds light on the pivotal role these reserves play in the economic robustness of nations amid challenging times.

China amassed US$3.1 trillion in Q2 2023

At the zenith, the People’s Republic of China (PRC) showcased the highest foreign exchange reserves in Q2 2023, amassing a remarkable $3.1 trillion USD ($3,192,998,000,000). Notably, China exhibited the lowest volatility in terms of the rate of change, with the lowest maximum decrease recorded at approximately -4.12%. This stability is particularly noteworthy against the backdrop of a turbulent global economic scene.

Japan, securing the second spot, held reserves tallying to $1.12 trillion USD ($1,120,152,000,000) in Q2 2023, outstripping the Republic of Korea (ROK) by a significant margin, nearly two-thirds to be precise. The juxtaposition of Japan and ROK underscores the disparate levels of forex reserves among nations, even in a region known for its economic vibrancy.

Switzerland, clinching the third position, held $809.2 billion USD ($809,213,980,000) in foreign exchange reserves in Q2 2023. However, it’s the high volatility, characterized by a standard deviation and a maximum increase of approximately 13.26%, that sets Switzerland apart. This high volatility is emblematic of the dynamic and oftentimes unpredictable nature of the foreign exchange reserves in response to global economic events.

The analysis further unveils the contrasting levels of forex reserves among other nations. For instance, the stark difference between the PRC and the Hong Kong Special Administrative Region (HKSAR) is evident, with HKSAR holding 87% less in foreign exchange reserves compared to the PRC. This disparity elucidates the varying economic buffer nations have amidst global economic uncertainties.

The communication from Wang Chunying, a spokesperson from the forex administration, highlights the interplay between global events such as the COVID-19 pandemic and monetary policy shifts in major countries, and the valuation of the US dollar, which in turn influences the trajectory of China’s foreign exchange reserves.

Moreover, the metrics driving Japan’s foreign exchange reserves, as reported by ministry officials, reflect the multifaceted factors affecting forex reserves, ranging from interest earned on foreign bond holdings, overseas yield declines, currency valuation shifts, to gold prices.

In the same vein, the Swiss National Bank’s (SNB) maneuvers through FX interventions during the eurozone debt crisis and the COVID-19 pandemic underscore the proactive steps nations take to mitigate appreciation pressures on their currencies, thereby impacting their forex reserves.

The analysis by provides a lucid view of the economic fortresses nations have, or lack, through their foreign exchange reserves in a period fraught with economic vicissitudes. It accentuates not just the economic disparities among nations, but also the diverse strategies and external factors influencing the ebb and flow of these crucial reserves.

Read this next

Digital Assets

Philippine bars access to Binance, citing unregistered operations

The Philippines’ Securities and Exchange Commission (SEC) is moving to block access to Binance due to regulatory concerns, citing the platform’s operation without proper registration and authorization in the country.

Digital Assets

FTX cleared to sell investments in Grayscale and Bitwise funds

Bankrupt cryptocurrency exchange FTX has received approval from the bankruptcy court to start selling its stakes in digital trusts managed by Grayscale Investments.

Digital Assets

Nexo launches Dual Investment for yield earning and price prediction

“Dual Investment revolutionizes how users engage with BTC and ETH, offering a flexible, intuitive, yet sophisticated platform for predicting asset price movements, all while securing high yields.”


Aquis Stock Exchange goes live with cloud-based matching engine powered by AWS

“By running on AWS, the Aquis Stock Exchange is driving transformation across the capital markets industry while continuing to enhance the scalability, functionality and innovation that will benefit its members and stakeholders in an environment where security and resiliency are our highest priority.”


Options Technology certified as Microsoft Azure partner for Digital & App Innovation

“Securing our fifth Microsoft Solutions Partner status in less than 12 months is a testament to our commitment to innovation, excellence, and the highest industry standards. We are not only keeping pace with the evolving landscape of cloud technology but leading the way in shaping its future.”

Retail FX

N26 reports €213M in net loss, integrates stock and ETF

European digital bank N26 has shared its strategic roadmap for the next few years, underlining both its growth trajectory and financial targets. The announcement included key financial results for 2022 and projections for the coming years.

Digital Assets

Canadian ownership of crypto assets fell by 23%, study finds

Concerns about risks, volatility, lack of government guarantee, and potential fraud or hacking deterred others from buying crypto.

Institutional FX

Fortex adds GBE Prime to liquidity offering

“This collaboration enhances our liquidity distribution capabilities, offering our clients improved pricing, order execution, and risk management. We look forward to the positive impact this integration will have on our clients.”

Retail FX

Fullerton Markets Caps Off Stellar Year with Dual Triumph at Gazet International Awards 2023

Fullerton Markets, one of the fastest-growing brokerages in the Asia Pacific, has today announced its remarkable success at the prestigious Gazet International Awards 2023, where it secured two coveted accolades, reinforcing its position as a global leader in multi-asset brokerage and marketing a triumphant end to the year.