Who and where store the world's largest gold reserves

Imagine that somewhere in the vaults of the Federal Reserve Bank of New York lies more than 8,000 tons of pure gold — that's more than the weight of 1,300 African elephants. You can't just drop by such gigantic country vaults to see how much money is stored “for a rainy day,” but we'll try. Gold is an important part of foreign exchange reserves (FER), which provide the economic security of countries and the well‑being of each of their citizens. In this article we will explain in simple terms what FER are, which countries have the most gold, and also tell you where the leaders of the world ranking keep their treasures.

What will be discussed

What are foreign exchange reserves (FER)

What countries actually spend their foreign exchange reserves on

Can a country do without foreign exchange reserves

FER — how reliable is it as insurance against a currency collapse?

Where countries store their gold reserves

What is the gold reserve of Belarus

This article was previously published on Onlíner. We have updated it and added current information.

What are foreign exchange reserves (FER)

Foreign exchange reserves are the state’s financial shield, a collection of highly liquid (i.e., quickly usable) assets under the control of the central bank and the government. The structure of international reserves includes:

• monetary gold;
• Special Drawing Rights from the International Monetary Fund (SDR);
• reserve position in the IMF;
• foreign currencies: US dollar, euro, British pound sterling, yen, Chinese yuan, Swiss franc, Australian dollar, Canadian dollar.

The volume of foreign exchange reserves is usually measured in US dollars, as this currency remains key for international settlements.

FER are a fundamental guarantee of a country’s solvency on the world stage. Their main purpose is to protect the economy from external and internal shocks, ensuring macroeconomic stability.

What countries actually spend their foreign exchange reserves on

Countries use their FER extremely cautiously — here are the main areas where these funds can be directed:

1. Conducting currency interventions to stabilize the exchange rate. Currency interventions are targeted operations by the central bank to buy and sell foreign currency on the market to influence the national currency’s rate.

How does it work? Suppose the national currency's exchange rate starts to fall sharply due to panic sentiment or capital outflow. To support it, the regulator begins selling currency from its foreign exchange reserves, buying the national currency. This increases the supply of foreign currency on the market and raises demand for the national currency, helping to halt the collapse.

And when the national currency is too strong, this can be dangerous for exporters, whose goods become more expensive for foreign buyers. In this case, the regulator does the opposite: it buys foreign currency (adding to reserves), issuing the national currency for that purpose. This weakens the exchange rate and supports the competitiveness of the economy.

In short, the regulator acts as a giant stabilizer, using foreign exchange reserves as a 'counterweight' to smooth sharp fluctuations in the foreign exchange market.

2. Financing critical imports of goods and

• support of the financial system during a crisis;
• lending to other states or international organizations;
• formation of financial reserves for state pension or stabilization funds.

Thus, foreign‑exchange reserves are not a “stash” for large purchases, but a multifunctional insurance fund that ensures the stability of the national currency, supports the country’s solvency, and guarantees its economic security on a global scale.

Can a country do without foreign‑exchange reserves?

The question of the necessity of foreign‑exchange reserves is fundamental to the economy of any state. In theory, a country with an ideally flexible floating exchange rate and a stable, diversified economy could minimize...