Question

Which one of the following is the correct sequence of the countries having foreign Exchange Reserve from high to low ?

• A. China - Russia - India - France
• B. China - France - India - Russia
• C. France - China - Russia - India
• D. France - China - India - Russia

Answer 1

The Correct Option is A

Step 1 — Understand the question:
The question asks for the correct sequence of countries arranged from highest to lowest foreign exchange reserves. Foreign exchange reserves (commonly called forex reserves) are assets held by a nation’s central bank in foreign currencies, including foreign currency deposits, bonds, gold reserves, and special drawing rights (SDRs). These reserves are used to support the national currency, manage exchange rates, and maintain confidence in financial markets.

Step 2 — Recall the global scenario:
Among the world’s economies, some countries maintain very large forex reserves due to their global trade surpluses, exports, and economic strategies. The leading nations in forex reserves include China, Japan, Switzerland, Russia, India, and a few European countries. The relative positions of Russia, India, and France are much lower than China but still important to compare.

Step 3 — Analyze each country’s forex position:
1. China: China has the world’s largest foreign exchange reserves, consistently above 3 trillion USD. This is due to its massive export surplus and trade dominance.
2. Russia: Russia maintains very high reserves as well, often over 500 billion USD, accumulated through oil and gas exports. Even after sanctions, Russia remains ahead of many other countries in forex rankings.
3. India: India has forex reserves in the range of 600 billion USD (sometimes slightly more or less depending on currency fluctuations). This puts India among the top 5 globally but still lower than China and generally lower than Russia in most comparisons.
4. France: France’s forex reserves are much smaller compared to China, Russia, and India, usually around 200 billion USD or lower. Hence, it ranks after these three in the sequence.

Step 4 — Arrange in descending order:
- Highest → China
- Then → Russia
- Then → India
- Lowest among the four → France

Step 5 — Final conclusion:
Thus, the correct sequence of countries having foreign exchange reserves from high to low is:
China – Russia – India – France.

Answer: The correct option is (A) : China - Russia - India - France.