This graph does not show that. This graph shows that nations which import/export a lot of stuff have to have high reserves to do so when they are not the global hegemon world currency. China for instance uses ~2$Trillion USD just to import the products to manufacture into export products which is included in this. Also, countries which have private banks and not a national bank show up very low on this graph. Countries such as China with zero private banks able to hold anything outside of China their total does not count in this graph. USA and EU countries whose private banks operate globally, also do not show up on this graph, but they have to hold GIANT reserves which are not shown on this graph. Only national bank assets are shown. Private savings is indeed high in Asian countries which never really went off Gold. For instance, there is at least 20,000 tons of gold held privately by Indian and USA citizens which does NOT show up on this graph at all. How much Chinese citizens, or thai citizens for instance hold gold is an unknown question.
Because there never was any gold worth mentioning. There was quite a bit of silver out of Bolivia, but even that is tiddly winks compared to what is mined annually today.
Reserves are basically your cash money. If you don't have cash , you can't buy anything. Similarly, if a country can't have forex reserve; the government of that country can't import/ buy goods and services from other countries/ global market. That's why you can see that argentina/ srilanka/ pakistan entered in crisis as soon as they lost forex reserve.
They count reserve money(Gold/silver/platinum) + reserve currency(USD) in the main federal national bank which allows them to loan slash pay off national debts. If you want to invest in a country its Debt to reserve ratio is very important. If low, you have a good idea that you will be paid back. If it is high there is a VERY high ratio that it will be stolen --> AKA "nationalized". Private banks are not counted on here. The line is VERY blurred here as nations such as China have ZERO private banks whereas Chase Manhattan, Goldman Sachs, US Bank, Wells Fargo in the USA are not counted at all. Likewise many other countries have private banks as well(like all of EU countries) and are also NOT counted in this graph.
@@frankfleming1103 I know English is your 2nd language, but try reading the caveats in someone's statements before replying.... Private banks who have INTERNATIONAL business. Private Chinese banks ONLY operate inside China they are not allowed by CHINA to operate outside of China. Only the federal CCP affiliated banks are allowed who make up their central 5 banks. This is true of many nations by the way, not just China. Know something about the world before typing hrmm?
Seems like Asians really love to save!
This graph does not show that. This graph shows that nations which import/export a lot of stuff have to have high reserves to do so when they are not the global hegemon world currency. China for instance uses ~2$Trillion USD just to import the products to manufacture into export products which is included in this. Also, countries which have private banks and not a national bank show up very low on this graph. Countries such as China with zero private banks able to hold anything outside of China their total does not count in this graph. USA and EU countries whose private banks operate globally, also do not show up on this graph, but they have to hold GIANT reserves which are not shown on this graph. Only national bank assets are shown.
Private savings is indeed high in Asian countries which never really went off Gold. For instance, there is at least 20,000 tons of gold held privately by Indian and USA citizens which does NOT show up on this graph at all. How much Chinese citizens, or thai citizens for instance hold gold is an unknown question.
@@w8stral The Chinese citizens obviously own much more gold than the Indians or Americans.
这是外贸赚的美元，跟储蓄没有关系
@@peterk5981 I know many Chinese and NO they do not own any gold. Know several Indian's and they show it regularly.
Despite all the gold stolen in southern America Spain isn't in the top 10, same for UK, were's the gold of the colonies??
Because there never was any gold worth mentioning. There was quite a bit of silver out of Bolivia, but even that is tiddly winks compared to what is mined annually today.
In the UK's case, what do you think paid for WW2?
@@justonecornetto80 In the UK's case, it is probably in Switzerland...
🏆
(Gold)
Napoleon Bonaparte said " Let China sleeps or when it wakes, it will shake the world ...."
Interesting how little Switzerland has so much reserves.
So where is China with 3.4 trillion worth of reserves and 2300 tons of gold?
Hong Kong and Taiwan _assets_ goes to China though , that's huge
China China China ✌🏼🇨🇳✌🏼🇨🇳✌🏼
Can someone explain how does reserves work? Like to how a high schooler can understand.
Reserves are basically your cash money. If you don't have cash , you can't buy anything. Similarly, if a country can't have forex reserve; the government of that country can't import/ buy goods and services from other countries/ global market. That's why you can see that argentina/ srilanka/ pakistan entered in crisis as soon as they lost forex reserve.
And if I’m not wrong countries hold their reserves in multiple currencies and they also hold bonds of other countries in different currencies.
They count reserve money(Gold/silver/platinum) + reserve currency(USD) in the main federal national bank which allows them to loan slash pay off national debts. If you want to invest in a country its Debt to reserve ratio is very important. If low, you have a good idea that you will be paid back. If it is high there is a VERY high ratio that it will be stolen --> AKA "nationalized". Private banks are not counted on here. The line is VERY blurred here as nations such as China have ZERO private banks whereas Chase Manhattan, Goldman Sachs, US Bank, Wells Fargo in the USA are not counted at all. Likewise many other countries have private banks as well(like all of EU countries) and are also NOT counted in this graph.
@@w8stral who told you that China has no privite bank? China also have Chase Manhattan, Goldman Sachs, US Bank, Wells Fargo branch
@@frankfleming1103 I know English is your 2nd language, but try reading the caveats in someone's statements before replying.... Private banks who have INTERNATIONAL business. Private Chinese banks ONLY operate inside China they are not allowed by CHINA to operate outside of China. Only the federal CCP affiliated banks are allowed who make up their central 5 banks. This is true of many nations by the way, not just China. Know something about the world before typing hrmm?