An end to the era of foreign currency stockpiling may be nigh.
This week's dramatic freeze of the Russian central bank overseas assets in response to Moscow's invasion of Ukraine may now question just why countries build foreign currency reserves at all.
It's a potentially huge issue for world markets given that central bank foreign currency reserves totalled a record $12.83 trillion late last year - a rise of $11 trillion over the past 20 years. This money is held mostly in U.S. and European government bills and bonds - with the U.S. dollar still accounting for almost 60% of that and the euro about 20%.
But of course China itself - for all its fraught relationship with the West - has been the biggest reserve stockpiler since it joined the global trading system 20 years ago amid tight control of its exchange rate. More than $3 trillion of its $3.22 trillion hoard was amassed since 2000 - precisely to offset foreign inflows to keep a lid on the yuan.
China's yuan may seem obvious - but Beijing is deliberately slow to liberalize its financial markets. It retains the right to intervene frequently to support its own political priorities and has only taken about a quarter of the 10% share of world reserves ceded by the U.S. dollar since 2000.
日本 最新ニュース, 日本 見出し
Similar News:他のニュース ソースから収集した、これに似たニュース記事を読むこともできます。
Russia, Ukraine meet for talks; Russia shells Ukraine's second-largest city: LIVE UPDATESBelarus may join the Russian invasion of Ukraine, which entered its fifth day on Monday. Fighting in the streets has engulfed Ukraine's second-largest city, Kharkiv, and Russian troops are encircling Ukraine's capital city, Kyiv.
続きを読む »
Russia-Ukraine live updates: Russia strikes key cities; Biden says Moscow ‘more isolated’ than everTanks entered port city Kherson, as capital Kyiv and second-largest city Kharkiv came under intense missile strikes.
続きを読む »
Russia-Ukraine war live updates: Russia under war crimes investigation as peace talks stallCanadian PM Trudeau says Canada is sending antitank weapons systems and 'upgraded' ammunition to Ukraine as it fights Russia's invasion.
続きを読む »
Russia-Ukraine conflict live updates: Kharkiv hit by fresh shelling, Russia faces war crimes probeRUSSIAN INVASION OF UKRAINE LATEST: • At least 10 people killed, 20 wounded in Kharkiv attack, interior ministry adviser says • Zelenskyy: 'If we defend Kyiv, we defend the country' • Ukrainian ambassador to the U.S. says Russia used vacuum bomb
続きを読む »