World’s Biggest Forex Reserves Ranked. Where Does India Stand?

Foreign exchange reserves are considered one of the most important indicators of a country’s economic strength and financial stability. These reserves are assets held by a nation’s central bank in the form of foreign currencies such as the US dollar euro Japanese yen British pound gold and the International Monetary Fund’s Special Drawing Rights or SDRs. They are used to stabilize the domestic currency finance imports repay external debt and protect the economy during periods of financial uncertainty.

In 2026 Asian economies continue to dominate the global rankings for foreign exchange reserves. China remains the world’s largest holder of official foreign exchange reserves with more than 3.4 trillion US dollars. Japan follows in second place with reserves exceeding 1.3 trillion dollars. Switzerland ranks third while India maintains a strong position among the world’s leading economies with foreign exchange reserves of more than 670 billion dollars. Russia Taiwan Saudi Arabia Hong Kong South Korea and Brazil are also among the countries with the largest reserve holdings.

India has experienced some fluctuations in its foreign exchange reserves in recent weeks. According to the latest data released by the Reserve Bank of India the country’s foreign exchange reserves stood at around 672 billion US dollars during the third week of June 2026. Earlier the reserves had declined due to rising global oil prices and intervention by the central bank to stabilize the Indian rupee. Despite these movements India’s reserve position remains robust by international standards and is sufficient to comfortably cover several months of imports.

According to economists one of the biggest advantages of maintaining large foreign exchange reserves is the ability to withstand global financial shocks or sudden capital outflows. If a country’s currency comes under pressure the central bank can sell foreign currency from its reserves to support the domestic currency and prevent excessive depreciation. This is one of the primary reasons why major economies continue to strengthen and diversify their reserve holdings.

The composition of global foreign exchange reserves has also been gradually evolving in recent years. According to the International Monetary Fund the US dollar continues to account for the largest share of central bank reserve assets worldwide. However the shares of the euro Chinese yuan Japanese yen and gold have been increasing gradually as many countries seek to diversify their reserve portfolios. By the end of 2025 global official foreign exchange reserves had reached approximately 13.1 trillion US dollars.

Japan has also recently introduced plans to improve the management of its nearly 1.3 trillion dollar foreign exchange reserves. The objective is to generate better returns on overseas assets while ensuring sufficient resources are available for possible interventions to support the Japanese yen when necessary.

Experts believe that geopolitical tensions fluctuations in energy prices and central bank interest rate policies will continue to shape foreign exchange reserve strategies in the coming years. In such an environment countries with stronger reserve positions are expected to be better equipped to withstand economic shocks and maintain financial stability.

Countries with the Largest Foreign Exchange Reserves

1. China. More than 3.4 trillion US dollars.
2. Japan. Around 1.3 trillion US dollars.
3. Switzerland. Around 1 trillion US dollars.
4. India. Around 672 billion US dollars.
5. Russia. Around 620 billion US dollars.
6. Taiwan. Around 575 billion US dollars.
7. Saudi Arabia. Around 430 billion US dollars.
8. Hong Kong. Around 420 billion US dollars.
9. South Korea. Around 420 billion US dollars.
10. Brazil. Around 390 billion US dollars.