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IMF says dollar losing ground in global forex reserves
2007-12-29
The dollar is losing ground as the currency of choice in the world's foreign exchange reserves, the International Monetary Fund said Friday. The dollar's share of forex reserves was 63.8 percent in the third quarter, compared with 65.0 percent in the second quarter and 66.5 percent in the 2006 July-September period, the IMF said on its website. By contrast, the 13-nation eurozone currency made up 26.4 percent of global forex reserves in the third quarter, compared with 25.5 percent in the second quarter and 24.4 percent a year ago. The trend is a fairly recent development. In the third quarter of 2005, the dollar's share was 66.4 percent and that of the euro was 24.3 percent, similar to the 2006 third-quarter levels. In recent months, several emerging-market countries, whose foreign currency reserves have ballooned as a result of such factors as high commodity prices and strong exports, have signaled their intention to further diversify their foreign exchange reserves to offset the US currency's depreciation. That was particularly the case with China, which has the world's largest reserves, at 1,430 billion dollars in September. Observers estimate the dollar comprises 70 percent of Chinese reserves, mainly in the form of US Treasury bonds.
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