The global share of the US dollar in global currency reserves fell
in the fourth quarter of last year to about 59%, its lowest level in 25 years,
according to International Monetary Fund data.
Some experts see this decline as nothing but a temporary decline
driven by the depreciation of the dollar against most currencies in the fourth
quarter, pointing to data that show the rise in dollar assets among central
banks to $ 7 trillion, which is a record, according to
"money.usnews".
Mark Chandler, chief market strategist at Bannockburn Global
Financial Services, says: “59% is statistical noise, caused by a combination of
valuation and material changes in euro demand in the fourth quarter. The recovery
of the dollar in the first quarter of 2021 will reverse the adjustment of the
valuation and will see an increase in the dollar’s share of reserves.
The US currency is heading to achieve its best quarterly performance
since 2018, by about 3.5%, with great progress in the distribution of Corona
vaccines and hopes for the economy to recover at a faster rate than its
counterparts.
Meanwhile, economic data showed that the private sector added jobs
at the fastest pace since last September, while pending US home sales declined
by more than 10% last February, according to the "cnbc" network.
According to Bloomberge, these developments coincided with the
decline in the currency scale the most since 2010, amid questions about how
long the dollar could maintain its position as a prominent reserve currency.
In contrast, the euro’s share in the last quarter of official
foreign exchange reserves increased to 21.2% from 20.5%, while the Chinese yuan
witnessed considerable strength in the currency markets, with more of it being
traded than ever before in London, which is the leading foreign exchange
center. In the world
In a related context, the yuan witnessed an increase of about 2.3%
from 2.1%, after it was 1.94% in the last three months of 2019.
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