Frank Talk, a CEO Blog by Frank Holmes

According to the OECD, foreign exchange rate reserves are the stocks of foreign currency denominated assets plus gold, held by a central bank. Market Studies Analyze complete markets. As global debt continues to skyrocket , central banks and individual investors alike might want to keep gold in their pockets, as it historically has performed well during times of economic downturn and geopolitical uncertainty. Value of M2 money supply in the U. This topic highlights some the main issues standing in the way of a deal and explores how the British public have reacted to the ongoing political drama. Our services Click the question mark for further information. The United States holds the number one spot with over 8, tonnes of gold in its vaults — nearly as much as the next three countries combined.

rows · Foreign-exchange reserves (also called Forex reserves) are, in a strict sense, Country or region Foreign-exchange reserves (Millions of US$) Figures as of 1 31 December


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Saint Vincent and the Grenadines. For the second year in a row, Venezuela has been the largest seller of gold, with 25 tonnes sold last year to help pay off debt.

However, gross official sector sales declined by 55 percent last year, to the lowest since , indicating that central banks are happy to keep their reserves in gold, historically viewed as a safe-haven asset.

According to the World Gold Council WGC , demand in the first quarter was up 42 percent year-over-year, with purchases totaling As global debt continues to skyrocket , central banks and individual investors alike might want to keep gold in their pockets, as it historically has performed well during times of economic downturn and geopolitical uncertainty.

The South Asian country, home to 1. The Dutch Central Bank announced that it will be moving its gold vaults from Amsterdam to Camp New Amsterdam, about an hour outside the city, citing burdensome security measures of its current location.

As many others have pointed out, this seems odd, given that the bank fairly recently repatriated a large amount of its gold from the U. Its central bank has been one of the most aggressive practitioners of quantitative easing—in January , it lowered interest rates below zero—which has helped fuel demand for gold around the world. During World War II, the neutral country became the center of the gold trade in Europe, making transactions with both the Allies and Axis powers.

Today, much of its gold trading is done with Hong Kong and China. However, this figure is up slightly from 2. China is also the number one gold producing nation. What other countries are top gold producers? The Russian Central Bank has been the largest buyer of gold for the past six years and earlier this year overtook China to have the fifth largest reserves.

In Russia bought tonnes of bullion in an effort to diversify away from the U. To raise the cash for these purchases, Russia sold a huge percentage of its U. Last year Germany completed a four-year repatriation operation to move a total of tonnes of gold from the Banque de France and the Federal Reserve Bank of New York back to its own vaults.

First announced in , the move was expected to take until to complete. Although gold demand fell last year after hitting an all-time high in , this European country has seen gold investing steadily rise since the global financial crisis.

With the largest official holdings in the world, the U. It also has the highest gold allocation as a percentage of its foreign reserves at over 75 percent. Over the last decade, countries in the developing world have been growing their foreign exchange reserves at an impressive rate, expanding them several times over.

By the end of the first quarter of , foreign reserves had once again begun to rise—and that trend continued since. The amount of reserves that a country should hold is not set in stone, although one common benchmark is holding enough to cover external debt for one year. In addition, the issuing country has an advantage in terms of cost of borrowing as it means the market for that currency is generally stronger than for other currencies.

Global economists and policymakers have long proposed that a currency other than the US dollar should be the main reserve currency for global business. Countries such as Russia and China, along with a number of central banks and economists have suggested the use of an independent currency to replace the dollar. Special Drawing Rights SDRs are international foreign exchange reserve assets, allocated by the IMF to nations, which represents a claim to foreign currencies. Proponents of SDRs suggest tying them to a basket of currencies—including the US dollar, the euro, the yen and the pound--to create a new, independent currency.

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35 rows · List of countries by foreign-exchange reserves (excluding gold) Jump to navigation Jump . rows · This page displays a table with actual values, consensus figures, forecasts, statistics and . Here are the 10 nations with the biggest forex reserves. 10 Countries With The Biggest Forex Reserves The ruble further strengthened throughout as the political situation in.