USD is still the king of foreign exchange reserves

The USD still holds its position in foreign exchange reserves. Photo: Tra My

Dollar-denominated claims rose 0.8% to $6.576 trillion in the second quarter, but were down 1% from a year earlier.

The euro's share increased slightly to 19.9% ​​in the second quarter, from 19.8% in the first quarter. Euro claims increased 1% in the quarter and were up 2% from a year earlier.

“The US dollar remains the dominant currency in foreign exchange and international financing, and its share of over-the-counter foreign exchange transactions remains remarkably stable,” said Michael Langham, emerging markets analyst at Abrdn.

However, he pointed out that the greenback's share of global reserves has been on a "decreasing trend" of more than 10 percentage points over the past 20 years. Much of this change has been driven by rotation into other developed market currencies, such as the euro, pound sterling, Canadian dollar and Australian dollar.

In addition, the Chinese yuan also has a reserve ratio, but at a very low level. Therefore, there are still many risks to the dominant position of the USD.

The dollar index rose 3.1% in the second quarter of 2023, recovering from a 0.9% decline in the first quarter. In the fourth quarter of 2022, the dollar index fell 7.7%.

The euro, on the other hand, fell 3.1% in the second quarter of 2023 after rising 1.2% in the first three months of the year. The common European currency gained 9.3% in the final three months of 2022.

IMF data also showed that the yuan's share of currency reserves fell to 2.4% in the second quarter of 2023 from about 2.6% in the first quarter. A year ago, it was 2.8%.

The yen's share held steady at 5.4% in the second quarter from around 5.5% in the first three months of 2023. In dollar terms, yen reserves fell 1.2% to $602.86 billion.

Total global reserves increased to $12.055 trillion in Q2/2023 from $12.028 trillion in Q1.

Source: https://laodong.vn/kinh-doanh/usd-van-la-vua-du-tru-ngoai-hoi-1248331.ldo