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Asian countries with maximum reserves of foreign exchange

ANN | New Delhi |

China is the world's largest holder of foreign exchange reserves. It has over two and half times more foreign reserves than the second largest reserve holder, Japan.

​The Asian giant has US$3.483  trillion of foreign exchange reserves, despite recent fall in foreign reserves. China is followed by Japan, with a substantial US$ 1.21 trillion worth of foreign exchange.

South Korea and India also have a large pie of the foreign exchange. In South Korea, the foreign exchange reserve is $370 billion while​ India holds US$361 billion worth of foreign exchange, as per the World Bank data.

Other Asian nations which have the maximum foreign reserves are Singapore (US$251 billion), Thailand (US$171 billion) and​ Indonesia (US$116 billion). Malaysia, Philippines and Vietnam have forex reserves of US$94 billion, US$480 billion and US$36 billion respectively.

As per the International Monetary Fund (IMF), any type of financial instrument that is used to make payments between countries is considered foreign exchange.

F​oreign exchange assets include foreign currency notes, deposits held in foreign banks, debt obligations of foreign governments and foreign banks, monetary gold, and SDRs.

​These reserves are crucial​ for a country to maintain global confidence in its economy and the monetary and exchange rates policies of the government. With high reserves of foreign exchange, a country’s central bank can regulate any hostile movement and stabilise the forex rates to make available a more constructive economic environment.