Foreign exchange reserves are a necessary preparation for a country's foreign trade.

With the increasing closeness of international trade, the foreign exchange reserves of various countries have undergone some changes.

In July of this year, the foreign exchange reserves of India and South Korea have seen significant changes.

What about China's foreign exchange reserves?

Before looking at the foreign exchange reserves of the three countries, let's first understand what foreign exchange reserves are and what role they play.

Foreign exchange reserves are foreign currency assets managed by central banks and other government agencies and can be exchanged for foreign currencies at any time.

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These foreign currency assets enable us to make timely payments in economic and trade dealings with foreign countries, and foreign exchange reserves also play some important roles.

When our country experiences a deficit in international trade, it can use foreign exchange reserves to mitigate the impact and maintain a balance in international trade.

What is this deficit in international trade?

This deficit, also known as a trade deficit, means that expenditures exceed income in international trade.

The appearance of a trade deficit can lead to a decline in the exchange rate of the currency.

Let's continue with foreign exchange reserves.

Foreign exchange reserves can not only complete transactions in international trade but also have a certain impact on exchange rates.

Faced with the downward pressure on the RMB exchange rate caused by U.S. financial policies, our country can use foreign exchange reserves as a powerful tool to hedge exchange rate fluctuations and maintain the basic stability of the RMB value.

Moreover, foreign exchange reserves not only allow countries to complete transactions in international trade in a timely manner but also enhance the country's reputation in economic cooperation, laying a solid foundation for future cooperation.

The role of foreign exchange reserves is extraordinary.

Countries will prepare a large amount of foreign exchange reserves in their development.

So, what is the situation of the foreign exchange reserves of China, South Korea, and India?

Let's first look at South Korea's foreign exchange reserves.

The ups and downs of South Korea's foreign exchange reserves are like an economic "ECG" reflecting the country's situation.

In half a year, the scale of reserves sometimes rises and sometimes falls, reflecting the complex and changeable internal and external environment faced by South Korea.

At the end of March 2024, South Korea's foreign exchange reserves reached $419.25 billion, which was a positive increase for the first time in three months since December 2023.

However, this increase did not last long.

In the following months, South Korea's foreign exchange reserves fell again, and the reason for the decline is closely related to the international environment.

After the Federal Reserve announced that the U.S. dollar interest rate would remain unchanged, South Korea's central bank began to intervene in the foreign exchange market, selling a large amount of foreign currency reserves and buying its own currency to alleviate the decline in its own exchange rate.

In the changing international economic situation, South Korea's foreign exchange reserves are like a small boat, inevitably caught up in the surging waves of the global economy.

These external shocks have become the key drivers of the ups and downs of South Korea's foreign exchange reserves.

Due to the increasingly tense international situation, the export volume of some industries in South Korea has been greatly affected, which has also led to changes in South Korea's foreign exchange reserves.

According to reports, South Korea's foreign exchange reserves in July were $413.51 billion, compared with the previous value of $412.21 billion.

Compared with the repeated fluctuations in South Korea's foreign exchange reserves, how is India's foreign exchange performance?

Let's turn our attention to this South Asian economic body.

Under Modi's leadership, India's economy has achieved leapfrog growth and has now risen to the ranks of the world's fifth-largest economy.

The rise of India's economy is like a huge magnet, attracting the attention of global investors.

They are targeting India's industries and investing heavily, injecting strong momentum into India's economy.

In addition to this factor, the "remittance funds" from Indians abroad are also a factor in the growth of India's foreign exchange reserves.

I have to tell you that India is the second-largest immigrant country in the world.

After years of hard work, many Indian immigrants have established themselves abroad and accumulated substantial wealth.

Some have even climbed to the top of corporate management with their talents and become business elites.

Of course, not all Indian immigrants are like this, and most Indian immigrants are the same as ordinary people.

These overseas Indians are continuously providing valuable funds to their motherland, providing strong momentum for the takeoff of India's economy.

These funds not only promote the rapid growth of India's economy but also provide sufficient nutrients for India's foreign exchange reserves, making it grow continuously.

In the following months, the amount of India's foreign exchange continued to rise.

As of August 2nd, India's foreign exchange reserves reached $675 billion, breaking the previous record.

India's foreign exchange reserves have performed well in many years of development, but due to changes in India's domestic policies, some multinational companies have gradually begun to have the idea of "fleeing" India, which has had a certain impact on India's development.

India's foreign exchange reserves have performed well in recent years, so what about our country's foreign exchange reserves?

Our country's foreign exchange reserves have performed well with the economic development of our country.

In 2006, our country's foreign exchange reserves exceeded $1 trillion for the first time, and in the subsequent development, our country's foreign exchange reserves have also been continuously increasing.

As of the end of July 2024, China's foreign exchange reserves reached $3,256.4 billion, an increase of $34 billion, or 1.06%, from the end of June.

When foreign countries purchase our country's products, the amount they pay is much more than the amount our country spends when purchasing, and the profit part is also an important source of our country's foreign exchange reserves.

Another important source of our country's foreign exchange reserves is the national debt of other countries.

These countries will raise funds by issuing national bonds during their development, such as the United States, which raises funds by issuing a large amount of national bonds.

There were quite a few U.S. bonds in our country's previous foreign exchange reserves, but as the United States issued more and more bonds, these bonds have accumulated to a terrifying height.

After seeing the large amount of U.S. bonds, our country has been continuously reducing the number of U.S. bonds to reduce losses.

Now our country's bond amount is slowly increasing, and I believe that in the subsequent international economic trade, our country's foreign exchange reserves can play a huge role.

Foreign exchange reserves have an irreplaceable role in international trade, and our country has accumulated a lot of foreign exchange reserves in many years of development.

I believe that in the future, our country's foreign exchange reserves will perform better.