Global central banks’ USD reserves decline to 59.2% in Q3 of 2023

Ahram Online , Saturday 23 Dec 2023

Global central banks’ reserves of US dollars declined to 59.2 percent during the third quarter of 2023 from 59.4 percent the previous quarter, the lowest figure since Q4 of 2022, according to the latest data released by the International Monetary Fund (IMF).

An employee counts U.S. dollars in a foreign exchange office in central Cairo, Egypt,

The IMF's data further highlighted a shift in the distribution of global central bank reserves among various currencies.

The Japanese yen experienced a slight increase in its share, rising to 5.5 percent in the July-September quarter, compared to 5.3 percent in the preceding quarter.

Conversely, the euro's share declined from 19.7 percent to 19.6 percent.

The shares of the Chinese yuan, British pound, Australian and Canadian dollars, and the Swiss franc remained relatively stable, with no significant changes observed.

However, the percentage of a group of other currencies increased from 3.6 percent to 3.9 percent.

The IMF's data underscored the ongoing decline in the US dollar's control over global central banks' currency reserves, with its dominance steadily diminishing over time.

At the turn of the current century, the dollar accounted for over 70 percent of global central bank reserves, as per the IMF's data.