The share of the US dollar in world reserves increases in the first quarter; share slips in euros


A photo illustration shows US $ 100 banknotes taken in Tokyo on August 2, 2011. REUTERS / Yuriko Nakao / File Photo

NEW YORK, June 30 (Reuters) – The share of the US dollar in foreign exchange reserves reported to the International Monetary Fund rose to 59.5% in the first quarter of the year, from 58.9% in the previous quarter, showed Wednesday IMF data.

The greenback remains the largest reserve of currency held by the world’s central banks.

Global reserves, which are reported in US dollars, are central bank assets held in different currencies used primarily to support their liabilities. Central banks sometimes use reserves to support their respective currencies.

“Given the larger gains of the US dollar in the first quarter, the rise in US dollar holdings may be more noticeable than real,” wrote Shaun Osborne, chief forex strategist at Scotiabank in Toronto, in a note to research after the release of IMF data.

The dollar index gained 3.6% in the first quarter.

“Wider trends point to the gradual abandonment of the US dollar in reserve assets,” he added.

The maximum allocation to the US dollar was 72.7% in the second quarter of 2001, according to IMF data, and while currency diversification has grown at a gradual pace, the trend has been persistent, Osborne said. .

Reserves held in US dollars fell to $ 6.991 trillion in the first quarter from $ 6.996 trillion in the fourth. Reserves held in euros, meanwhile, fell 4.4% on a quarterly basis to $ 2.415 billion.

The euro’s share fell to 20.6% in the first three months of the year, compared to 21.3% in the last quarter of 2020. Its share in the fourth quarter was the highest since 2014. In 2009, l The euro has reached its highest share. foreign exchange reserves at 28%.

The share of the Chinese yuan rose to 2.4% in the first quarter, from 2.2% in the previous three months. China’s share has increased for five consecutive quarters, with yuan reserves rising 7% to $ 287 billion. The IMF started tracking the yuan share in 2017.

Reporting by Gertrude Chavez-Dreyfuss Editing by Marguerita Choy and Jonathan Oatis

Our standards: Thomson Reuters Trust Principles.

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