Those who’re eagerly awaiting the end of the “dollar hegemony,” or the end of the dollar as the top global reserve currency, well, they’ll need some patience, because it’s happening at a glacial pace – according to the IMF’s just released data on the “Currency Composition of Official Foreign Exchange Reserves” (COFER) for the second quarter 2018.
What it confirms: Global central banks are ever so slowly losing their appetite for being over-exposed to US-dollar-denominated assets, though they’re not dumping them from their foreign exchange reserves; they’re just tweaking them....Wolf Street
US Dollar Refuses to Die as Global Reserve Currency but Loses Ground
Wolf Richter
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The IMF released the Currency Composition of Official Foreign Exchange Reserves (COFER) data for Q2 2018 on Friday. The total of reserves that are broken down by currency went up by $123BN, and unallocated reserves fell by $243BN. The most notably observation in the COFER report is that reserve managers actively decreased their allocation to USD – more than offsetting the effect of dollar appreciation – while at the same time adding significantly to non-USD allocations and especially to Chinese Yuan reserves....
Zero Hedge
In Troubling Sign For The US, Reserve Managers Plow Into Chinese Yuan, Dump Dollars
1 comment:
If the CBs purchase foreign currencies (or gold) they have to do so by creating new domestic reserve assets at their member depository institutions... which decreases the regulatory ratio of their domestic depository institutions...
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