Latest news with #COFER
Reuters
12 hours ago
- Business
- Reuters
Dollar cedes ground to euro in global reserves, IMF data shows
LONDON, July 9 (Reuters) - The U.S. dollar's share of global currency reserves reported to the International Monetary Fund nudged lower to 57.7% in the first quarter of 2025 while the share of euro-denominated reserves gained, International Monetary Fund data showed. Shares of global currency reserves held in the greenback stood at 57.8% at the end of 2024, while the share of euros gained from 19.8% to 20.1% - their highest since late 2022, according to the IMF's Currency Composition of Official Foreign Exchange Reserves (COFER) data released on Wednesday. Foreign currency markets have seen some dramatic swings since the start of the year. The dollar lost nearly 4% in the first quarter of the year as some big policy swings from the administration under U.S. President Donald Trump, especially on trade, security and the economy, roiled market confidence in the world's foremost reserve currency. The decline accelerated dramatically in the second quarter, when the dollar dropped more than 7% in the wake of Trump's introduction of sweeping tariffs on "Liberation Day" in early April - though some of those measures have been put on hold. While currency swings do not equate to reserve managers' willingness to hold them, the latest events have fuelled a debate on whether the U.S. dollar could be in danger of losing its status as the world's reserve currency of choice and the center point of the global monetary system. While some point to nascent signs of de-dollarisation, there is broad agreement that any such shift would be very slow. Looking at levels in claims, U.S. dollar claims did rise 1.4% quarter-on-quarter to $6.72 trillion, though that gain was outpaced by the euro's 2.6% rise to claims of $2.3 trillion, IMF data showed.
Yahoo
09-07-2025
- Business
- Yahoo
Dollar cedes ground to euro, Swiss franc shines in global reserves, IMF data shows
By Karin Strohecker and Grant Smith LONDON (Reuters) -The U.S. dollar's share of global currency reserves reported to the International Monetary Fund nudged lower to 57.7% in the first quarter of 2025 while the share of euro-denominated reserves gained, International Monetary Fund data showed. Shares of global currency reserves held in the greenback stood at 57.8% at the end of 2024, while the share of euros gained from 19.8% to 20.1% - their highest since late 2022, according to the IMF's Currency Composition of Official Foreign Exchange Reserves (COFER) data released on Wednesday. But it was the Swiss franc which saw the most dramatic increase, quadrupling its share to 0.8% of reserves by end-March - the highest level since at least 1999 when the euro was introduced - while the share of pound sterling also rose. Foreign currency markets have seen some dramatic swings since the start of the year. The dollar lost nearly 4% in the first quarter of the year as some big policy swings from the administration under U.S. President Donald Trump, especially on trade, security and the economy, roiled market confidence in the world's foremost reserve currency. The decline accelerated dramatically in the second quarter, when the dollar dropped more than 7% in the wake of Trump's introduction of sweeping tariffs on "Liberation Day" in early April - though some of those measures have been put on hold. On the flip side, the Swiss franc - widely seen as a safe haven currency - has become one of the best performing currencies this year, strengthening 14% against the dollar. While currency swings do not equate to reserve managers' willingness to hold them, the latest events have fuelled a debate on whether the U.S. dollar could be in danger of losing its status as the world's reserve currency of choice and the center point of the global monetary system. While some point to nascent signs of de-dollarisation, there is broad agreement that any such shift would be very slow. Looking at levels in claims, U.S. dollar claims did rise 1.4% quarter-on-quarter to $6.72 trillion, though that gain was outpaced by the euro's 2.6% rise to claims of $2.3 trillion, IMF data showed. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Time of India
17-06-2025
- Business
- Time of India
Gold set to gain share in forex reserves as dollar outlook dims: WGC
Gold reserves: A World Gold Council survey shows nearly half of central banks plan to boost gold reserves amid geopolitical risks. Gold may outpace the US dollar, with growing preference for safer, non-dollar assets including yuan and euro. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Gold could eat into the share of the US dollar in central bank forex holdings worldwide over the next five years, an annual World Gold Council (WGC) survey showed, underscoring a broad-based tilt toward safe-haven assets in a trading environment rocked by geopolitics and unpredictable trade tariffs. The yuan and the euro, too, might see share gains that reflect the shifting trade currents.'Nearly half of the central bank respondents intend to increase their own gold holdings in the coming year,' said Shaokai Fan, Global Head of Central Banks & Head of Asia-Pacific (ex-China). 'This is remarkable, especially considering how many record-high prices we've hit so far in 2025.'Gold prices have continued to surge through this year, in part aided by institutional purchases, after a record 2024 surge.'Notably, this reflects the current global financial and geopolitical environments,' Shaokai Fan said. 'Gold remains a strategic asset as the world faces uncertainty and tumult. Central banks are concerned about interest rates, inflation, and instability – all reasons to turn to gold to mitigate risk.'Central banks have bulked up gold holdings in recent years amid geopolitical and economic uncertainty. WCG said that central banks accumulated over 1,000 tonne of gold in each of the last three years, up significantly from the average 400-500 tonne over the preceding to the survey, which collected data from 73 of the world's central banks, were less sanguine about the prospects of the US dollar, which still is the world's reserve currency and the monetary unit in which goods are priced survey also revealed that 95% of respondents believe that global central bank gold reserves will increase over the next 12 months. This is a record high since it was first tracked in the 2019 survey and represents a 17% increase from the 2024 findings, WGC the American currency dollar maintains its position as the dominant global reserve currency, data from the International Monetary Fund's Currency Composition of Official Foreign Exchange Reserves (COFER) shows that the dollar's share has been on a gradual decline.'The majority of respondents (73%) see moderate or significantly lower US dollar holdings within global reserves over the next five years. Respondents also believe that the share of other currencies, such as the euro and renminbi, as well as gold, will increase over the same period,' the WCG survey said. Bank of Baroda May report, based on the WGC data, had shown that the gold holding by central banks climbed 4.1% annually between 2009 and top 10 holders are the US, Germany, Italy, France, Switzerland, Japan, Netherlands, China, Russia, and India.
Yahoo
31-03-2025
- Business
- Yahoo
Percent of global FX reserves in dollars ticks up, amounts fall, IMF data shows
NEW YORK (Reuters) - The amount in U.S. dollars held as reserve currency globally slipped in the last quarter of 2024 while the percentage of actual dollars held as reserve ticked up, IMF data showed on Monday. Dollar-equivalent amounts dropped also among holdings in euro, pound sterling, yuan, yen, Swiss franc and Australian and Canadian dollars, with only the latter showing a tick up in the percentage of holdings, the IMF's Currency Composition of Official Foreign Exchange Reserves (COFER) data showed. Reported global holdings of reserves of foreign exchange fell to $12.36 trillion at the end of 2024 from $12.75 trillion at the end of the third quarter of last year. Broken-down reserves, those which identify the single currencies, fell to $11.47 trillion from $11.84 trillion. The value of the greenback rose 7.7% in the last quarter of 2024 against a basket of peers, lowering the dollar value of reserves kept in other currencies. The dollar index has fallen nearly 4% in the first quarter of this year. "I don't expect drastic changes from one COFER report to the other because, why would you? The U.S. remains the most liquid and deep market in the world," said Brad Bechtel, global head of FX at Jefferies in New York. "The only category that has changed significantly is the allocation to gold, especially in places like China, India, Russia... but the COFER data doesn't really pick that up." The percentage of dollar-amount holdings reported in dollars edged up to 57.8% of the disaggregated total from 57.3%, and that in loonies ticked up to 2.77% from 2.74%. Euro holdings dropped to 19.8% from 20.0%, while the share of holdings in sterling fell to 4.73% from 4.98%. The share of holdings in yuan was unchanged at 2.18% and yen was little changed at 5.82% from 5.83%.
Reuters
31-03-2025
- Business
- Reuters
Percent of global FX reserves in dollars ticks up, amounts fall, IMF data shows
NEW YORK, March 31 (Reuters) - The amount in U.S. dollars held as reserve currency globally slipped in the last quarter of 2024 while the percentage of actual dollars held as reserve ticked up, IMF data showed on Monday. Dollar-equivalent amounts dropped also among holdings in euro, pound sterling, yuan, yen, Swiss franc and Australian and Canadian dollars, with only the latter showing a tick up in the percentage of holdings, the IMF's Currency Composition of Official Foreign Exchange Reserves (COFER) data showed. Reported global holdings of reserves of foreign exchange fell to $12.36 trillion at the end of 2024 from $12.75 trillion at the end of the third quarter of last year. Broken-down reserves, those which identify the single currencies, fell to $11.47 trillion from $11.84 trillion. The value of the greenback rose 7.7% in the last quarter of 2024 against a basket of peers (.DXY), opens new tab, lowering the dollar value of reserves kept in other currencies. The dollar index has fallen nearly 4% in the first quarter of this year. "I don't expect drastic changes from one COFER report to the other because, why would you? The U.S. remains the most liquid and deep market in the world," said Brad Bechtel, global head of FX at Jefferies in New York. "The only category that has changed significantly is the allocation to gold, especially in places like China, India, Russia... but the COFER data doesn't really pick that up." The percentage of dollar-amount holdings reported in dollars edged up to 57.8% of the disaggregated total from 57.3%, and that in loonies ticked up to 2.77% from 2.74%. Euro holdings dropped to 19.8% from 20.0%, while the share of holdings in sterling fell to 4.73% from 4.98%. The share of holdings in yuan was unchanged at 2.18% and yen was little changed at 5.82% from 5.83%.
