Dollar’s Share Of Global Reserves Tumbles To Lowest Since 1995 As Yuan Hits All Time High

Share this!

From Zero Hedge:
Dollar’s Share Of Global Reserves Tumbles To Lowest Since 1995 As Yuan Hits All Time High

Last week, the The IMF released the latest Currency Composition of Official Foreign Exchange Reserves (COFER) report for Q4 2020.

It showed that the trend of global dedollarization has accelerated and while the Dollar’s share of global reserves initially increased at the start of the pandemic, it has since decreased sharply and now stands at just 59% – a 1.5% decline for the quarter and the lowest level since 1995. According to Goldman, a fair bit of the decline over the last few quarters was due to valuation effects as the Dollar depreciated, but the decline in Q4 can be largely attributed to active selling as well.  The Euro, Yen and Renminbi were the main beneficiaries of this dollar dump, while the uptick in Sterling’s share appears to be mostly due to the currency’s appreciation.

While the Dollar’s share in allocated reserves has fallen markedly, the Euro’s share has enjoyed a modest rebound and last quarter moved decisively out of the range where it has been stuck for the past few years. 

The Yen’s share of reserves initially fell in the early stages of the pandemic, possibly on the back of cross currency basis trades being unwound, but has been climbing again for the last two quarters.

Meanwhile, in what may be the most concerning news for the US, the share of CNY reserves continues to slowly and steadily increase.

Tyler Durden
Sat, 04/03/2021 – 11:03
Read More


This article was aggregated by Artificial Intelligence and this content does not necessarily reflect the opinions of Counter Globalist News. We do not own this content. Counter Globalist News is aggregating this article under fair use law for news and commentary purposes on social media networks. All aggregated content is automatically deleted from this site after 14 days. Please bookmark the source or archrive this page if you wish to reference it in the future.


0 0 vote
Article Rating

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Inline Feedbacks
View all comments

Be First to Know!

Join Our Other 2,616 Happy Newsletter Subscribers!

No, thanks!

Would love your thoughts, please comment.x
%d bloggers like this: