Global FX reserves up in Q2 on valuation effects – ANZ

The IMF’s COFER data shows an USD219bn increase in global FX reserves in Q2, mostly due to positive FX valuation effects, notes Khoon Goh, Head of Asia Research at ANZ. 

Key Quotes

“The USD’s share of global reserves fell to 63.8% and EUR’s rose to 19.9%. RMB’s share stayed steady at 1.1%.”

“Reserve managers were active buyers of USD and sold EUR, despite strength in the single currency during the quarter.”

“China continues to increase the portion of their reserves which are included in the COFER data. Based on the recent rate of reporting, we estimate that full inclusion of China’s FX reserves will be reached by Q2 2018.”