The continued decline in the dollar share of world foreign exchange reserves
News_Code: 354982 12/27/2020 12:49:19 PM
The continued decline in the dollar share of world foreign exchange reserves
The International Monetary Fund has announced a decline in the dollar's share of world foreign exchange reserves for the third time in a row.

According to Reuters, the world's central banks' interest in the dollar is declining, and safer currencies such as the Japanese yen and the Swiss franc are replacing green banknotes. As new data from the International Monetary Fund shows, the dollar's share of the world's foreign exchange reserves reached 60.4% at the end of the third quarter, marking the largest quarterly decline in the dollar's share in 11 years. This figure is 0.9% less than the recorded figure for the same period before.

On the other hand, the Chinese yuan's share of world foreign exchange reserves continues to grow, accounting for about 2.2 percent of total reserves, which is 0.1 percent higher than the figure recorded in the previous quarter. On the other hand, the share of the yen fell to 5.4 percent. The euro's share of these reserves also reached 20.5 percent, which is 0.1 percent lower than the previous record. With China's economy improving after the coronavirus epidemic, traders are more willing to buy and hold the yuan, to the point where it has risen the most against the dollar among the world's nine major currencies.

At present, $ 6.937 trillion of global foreign exchange reserves are dollars, which, compared to the end of the second quarter of the year, is $ 54 billion more in value and decreased by 0.9% in percentage.

In a separate report, one of the largest US banks announced a decrease in central banks' willingness to hold the dollar and an increase in demand for gold. According to the Bank of America, the world's central banks added more than 650 tons of gold to their foreign exchange reserves last year. The Bank of America estimated the dollar's share of the world's central banks' foreign exchange reserves at 61.8 percent, which is 0.5 percent higher than the International Monetary Fund estimates.