ANI
08 May 2021, 16:48 GMT+10
Washington DC [USA], May 8 (ANI): The share of US dollar reserves held by central banks fell to 59 per cent -- its lowest level in 25 years -- during the fourth quarter of 2020, according to a recent survey by the International Monetary Fund (IMF).
Findings of the IMF's Currency Composition of Official Foreign Exchange Reserves (COFER) survey say this partly reflects declining role of US dollar in global economy in the face of competition from other currencies used by central banks for international transactions.
If the shifts in central bank reserves are large enough, they can affect currency and bond markets, said Serkan Arslanalp, Deputy Division Chief in balance of payments division of IMF's statistics department, and economist Chima Simpson-Bell.
The share of US dollar assets in central bank reserves dropped by 12 percentage points -- from 71 to 59 per cent -- since the euro was launched in 1999, they said in a blogpost posted on IMF's website.
Meanwhile, the share of the euro has fluctuated around 20 per cent while the share of other currencies including Australian dollar, Canadian dollar and Chinese renminbi climbed to 9 per cent in the fourth quarter.
However, the fact that value of US dollar has been broadly unchanged while its share of global reserves has declined indicates that central banks have indeed been shifting gradually away.
Some expect that US dollar's share of global reserves will continue to fall as emerging market and developing economy central banks seek further diversification of currency composition of their reserves. A few countries like Russia have already announced their intention to do so.
Despite major structural shifts in international monetary system over the past six decades, US dollar remains the dominant international reserve currency. Any changes to its status are likely to emerge in the long run.
(ANI)Get a daily dose of Indianapolis Post news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Indianapolis Post.
More InformationNEW YORK, New York -U.S. stock markets closed with broad gains on Thursday, led by strong performances in U.S. tech stocks, while European...
LONDON/STOCKHOLM: The Persson family is ramping up its investment in the H&M fashion empire, fueling renewed speculation about a potential...
PARIS, France: L'Oréal is making a fresh play in the booming premium haircare segment with a new acquisition. The French beauty conglomerate...
MENLO PARK, California: Robinhood is giving European investors a new way to tap into America's most prominent tech names — without...
NEW YORK, New York - U.S. stocks diverged on Wednesday for the second day in a row. The Standard and Poor's 500 hit a new all-time...
NEW YORK CITY, New York: The U.S. dollar continues to lose ground, weighed down by growing concerns over Washington's fiscal outlook...
GENEVA, Switzerland: A new United Nations report alleges that dozens of global corporations are profiting from and helping sustain...
LONDON, UK - Lawmakers in the United Kingdom have voted overwhelmingly to proscribe the direct-action group Palestine Action as a terrorist...
DHARAMSHALA, India: The Dalai Lama is set to address a significant three-day conference of Buddhist leaders this week, coinciding with...
WASHINGTON, D.C.: In a significant ruling last week, the U.S. Supreme Court upheld a Texas law requiring age verification for users...
ISTANBUL/PARIS/BRUSSELS: As searing temperatures blanket much of Europe, wildfires are erupting and evacuation orders are being issued...
VENICE, Italy: Over the weekend, hundreds of protesters marched through the narrow streets of Venice to voice their opposition to billionaire...