{"id":19605,"date":"2021-04-02T17:29:22","date_gmt":"2021-04-03T00:29:22","guid":{"rendered":"https:\/\/setapartbytruth.org\/wordpress-watchman\/?p=19605"},"modified":"2021-04-02T16:42:45","modified_gmt":"2021-04-02T23:42:45","slug":"us-dollars-status-as-dominant-global-reserve-currency-drops-to-25-year-low","status":"publish","type":"post","link":"https:\/\/setapartbytruth.org\/wordpress-watchman\/us-dollars-status-as-dominant-global-reserve-currency-drops-to-25-year-low\/","title":{"rendered":"US Dollar\u2019s Status as Dominant \u201cGlobal Reserve Currency\u201d Drops to 25-Year Low"},"content":{"rendered":"

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Wolf Richter<\/a> – March 31, 2021<\/p>\n

The global share of US-dollar-denominated exchange reserves dropped to 59.0% in the fourth quarter, according to the IMF\u2019s COFER data released today. This matched the 25-year low of 1995. These foreign exchange reserves are Treasury securities, US corporate bonds, US mortgage-backed securities, US Commercial Mortgage Backed Securities, etc. held by foreign central banks.<\/p>\n

Since 2014, the dollar\u2019s share has dropped by 7 full percentage points, from 66% to 59%, on average 1 percentage point per year. At this rate, the dollar\u2019s share would fall below 50% over the next decade.<\/p>\n

Not included in global foreign exchange reserves are the Fed\u2019s own holdings of dollar-denominated assets, its $4.9 trillion in Treasury securities and $2.2 trillion in mortgage-backed securities<\/a>, that it amassed as part of its QE.<\/p>\n

The US dollar\u2019s status as the dominant global reserve currency is a crucial enabler for the US government to keep ballooning its public debt<\/a>, and for Corporate America\u2019s relentless efforts to create the vast trade deficits by offshoring production to cheap countries<\/a>, most prominently China and Mexico. They\u2019re all counting on the willingness of other central banks to hold large amounts of dollar-denominated debt.<\/p>\n

But it seems, central banks have been getting just a tad nervous and want to diversify their holdings \u2013 but ever so slowly, and not all of a sudden, given the magnitude of this thing, which, if mishandled, could blow over everyone\u2019s house of cards.<\/p>\n

https:\/\/wolfstreet.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Wolf Richter – March 31, 2021 The global share of US-dollar-denominated exchange reserves dropped to 59.0% in the fourth quarter, according to the IMF\u2019s COFER data released today. This matched the 25-year low of 1995. These foreign exchange reserves are Treasury securities, US corporate bonds, US mortgage-backed securities, US Commercial Mortgage Backed Securities, etc. held … Continue reading US Dollar\u2019s Status as Dominant \u201cGlobal Reserve Currency\u201d Drops to 25-Year Low<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[18],"tags":[12,149,1646,14561,7044],"class_list":["post-19605","post","type-post","status-publish","format-standard","hentry","category-warning","tag-china","tag-economy","tag-imf","tag-public-debt","tag-us-dollar"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p8fAkI-56d","_links":{"self":[{"href":"https:\/\/setapartbytruth.org\/wordpress-watchman\/wp-json\/wp\/v2\/posts\/19605","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/setapartbytruth.org\/wordpress-watchman\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/setapartbytruth.org\/wordpress-watchman\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/setapartbytruth.org\/wordpress-watchman\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/setapartbytruth.org\/wordpress-watchman\/wp-json\/wp\/v2\/comments?post=19605"}],"version-history":[{"count":1,"href":"https:\/\/setapartbytruth.org\/wordpress-watchman\/wp-json\/wp\/v2\/posts\/19605\/revisions"}],"predecessor-version":[{"id":19607,"href":"https:\/\/setapartbytruth.org\/wordpress-watchman\/wp-json\/wp\/v2\/posts\/19605\/revisions\/19607"}],"wp:attachment":[{"href":"https:\/\/setapartbytruth.org\/wordpress-watchman\/wp-json\/wp\/v2\/media?parent=19605"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/setapartbytruth.org\/wordpress-watchman\/wp-json\/wp\/v2\/categories?post=19605"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/setapartbytruth.org\/wordpress-watchman\/wp-json\/wp\/v2\/tags?post=19605"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}