1/6
Central banks held $287 billion worth of RMB, representing 2.45% of total global reserves. For comparison purposes, USD comprised 59.54%, euros 20.57%, Japanese yen 5.89%, sterling 4.70%, Canadian dollars 2.1%, Aussie dollars 1.8% and SFR 1.7%.
en.people.cn/n3/2021/0702/c…
Central banks held $287 billion worth of RMB, representing 2.45% of total global reserves. For comparison purposes, USD comprised 59.54%, euros 20.57%, Japanese yen 5.89%, sterling 4.70%, Canadian dollars 2.1%, Aussie dollars 1.8% and SFR 1.7%.
en.people.cn/n3/2021/0702/c…
2/6
It is interesting that it is only in the anglophone economies that the reserve share of their currencies substantially exceeds their share of global GDP. The main exceptions are Japan, whose currency share is just a little above its GDP share, and Switzerland, whose...
It is interesting that it is only in the anglophone economies that the reserve share of their currencies substantially exceeds their share of global GDP. The main exceptions are Japan, whose currency share is just a little above its GDP share, and Switzerland, whose...
3/6
outsized banking sector and very peculiar history has long made the SFR a safe-haven currency. Otherwise it is noteworthy that only the currencies of the anglophone economies play such an disproportionately important share of global trade and reserves.
outsized banking sector and very peculiar history has long made the SFR a safe-haven currency. Otherwise it is noteworthy that only the currencies of the anglophone economies play such an disproportionately important share of global trade and reserves.
4/6
Of course it's not just coincidence that anglophone economies have also tended in the past few decades to run large, persistent trade deficits. As foreigners persistently acquire their currencies, the anglophone economies must automatically run the corresponding deficits.
Of course it's not just coincidence that anglophone economies have also tended in the past few decades to run large, persistent trade deficits. As foreigners persistently acquire their currencies, the anglophone economies must automatically run the corresponding deficits.
5/6
This, I would argue, is pretty strong evidence that excess global savings flow not to the economies where they are most needed but rather to financial markets with the strongest and most transparent governance. This is also why I am pretty skeptical...
This, I would argue, is pretty strong evidence that excess global savings flow not to the economies where they are most needed but rather to financial markets with the strongest and most transparent governance. This is also why I am pretty skeptical...
6/6
of claims (made regularly over the past 10-15 years) that the world is on the verge of acquiring massive RMB positions without requiring a dramatic transformation of governance and transparency.
of claims (made regularly over the past 10-15 years) that the world is on the verge of acquiring massive RMB positions without requiring a dramatic transformation of governance and transparency.
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