Top 10 countries with the lowest reserves of foreign exchange and gold 2025

A nation’s gold and foreign exchange reserves are more than just accounting numbers in the linked global economy of today; they are a crucial indicator of its strategic capacity and economic resilience.

Business Insider Africa presents the top 10 countries with the lowest reserves of foreign exchange and gold 2025.
This list is courtesy of Global Firepower.
Somalia ranks number 1 on the list.

A number of vulnerabilities are present in nations with inadequate reserves, and these difficulties are particularly noticeable in many African countries that are struggling with debt, inflation, and currency instability.

In times of crisis, a government’s capacity to act in the currency market to maintain its national currency is limited by low gold and foreign exchange reserves.

A country that lacks an adequate buffer is vulnerable to severe currency depreciation, which raises the price of everything from gasoline and food to machinery and medications.

This increases societal dissatisfaction and reduces consumer purchasing power.

Furthermore, low reserves reduce investor trust. International investors regard countries with limited reserves as high-risk, resulting in capital flight and a substantial drop in foreign direct investment.

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Credit rating agencies may downgrade such nations, raising borrowing costs and further straining governmental budgets. It creates a vicious cycle: low reserves contribute to negative investor sentiment, which fuels further economic instability.

Low reserves also hinder a country’s capacity to repay foreign debt, increasing its reliance on international rescues such as the IMF.

While such bailouts may provide temporary respite, they are sometimes accompanied with stringent restrictions, like austerity measures, which can be politically unpopular and socially disruptive.

This reliance reduces a country’s budgetary sovereignty and limits its ability to establish economic policies.

Furthermore, low reserves limit a country’s ability to import crucial commodities and services, such as electricity and food, potentially leading to shortages and increased civil discontent.

For some African countries, whose economies rely significantly on imports, this poses a direct danger to national security and progress.

In the context of global power rankings such as Global Firepower, a low level of reserves indicates a deeper weakness in economic preparation.