12 trillion dollars ... world reserves reach a record high

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12 trillion dollars ... world reserves reach a record high

l 3 hours ago

Agencies - Abu Dhabi

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The US dollar is still dominant

Data from the International Monetary Fund showed, on Wednesday, that the share of the US dollar of currency reserves reported to the fund amounted to 61.3 percent in the second quarter of the year, down from the first three months, while global reserves rose to an unprecedented number.

A year earlier, the dollar’s share was also 61.3 percent, to remain the largest among various currencies, while it was recorded at 61.8 percent in the first quarter.

The fund's data showed that global reserves rose to an unprecedented level of $ 12.031 trillion in the second quarter, compared to 11.703 trillion in the first quarter.

Total reserves in US dollars reached 6.9 trillion dollars, compared with 6.77 trillion in the previous three months.

“The US dollar still maintains a dominant position as the global reserve currency,” said Barish Upadhaya, director of foreign exchange strategy and portfolio manager at Amundi Pioneer Asset Management in Boston, commenting in a recent research note.

He added, "While there has been a marked decline in the United States' share of global growth, it remains the largest economy in the world."

 

The dollar fell 3 percent in the second quarter, its worst since June 2017, as investors sought to exit safe havens and buy in high-risk currencies, encouraged by expectations of a rapid recovery from the recession caused by Covid-19 .

The euro’s share of global reserves stabilized at 20.3 percent in the second quarter, from 20 percent in the first.

According to IMF data ,  the highest level of euro reserves was in 2009, when it reached 28 percent.

The yen's share also stabilized at 5.7 percent in the second quarter, from 5.8 percent in the first. There was little change in the share of the Chinese yuan , which is 2 percent of global reserves.