Ecns wire

RMB share in global reserves hits record high

2022-04-11 Editor : Zhang Dongfang ECNS App Download

(ECNS) –The share of Chinese currency RMB in global reserves hit a record high in the fourth quarter of last year, according to the data of Currency Composition of Official Foreign Exchange (COFER) published by the International Monetary Fund (IMF).

The total volume of RMB in global reserves climbed to $336.1 billion in last fourth quarter from $320.15 billion in last third quarter. It accounts for 2.79 percent in global reserves, higher than the 2.66 percent in the third quarter of last year, ranking fifth among world currencies.

It has hit the highest level since the IMF started to release related data in 2016.

RMB has been the fifth international reserve currency for the 13th quarter in a row since the fourth quarter of 2018. Currently, over 70 foreign central banks and similar institutions have entered China’s inter-bank bond market and RMB has become a choice of foreign exchange reserve among more than 75 currency authorities of countries and regions.

According to a study conducted by the Official Monetary and Financial Institutions Forum (OMFIF), 30 percent of global central banks plan to increase their RMB reserves in the next 24 months and 70 percent of them consider to do so in the long term.

“China’s economy remains stable and is leading recovery amid the COVID-19 pandemic resurgence and the changing geopolitical situation. With gradually prominent advantages, China’s manufacturing industry continues to exceed expectations in export performance, and the RMB exchange rate price continues to strengthen, which has boosted international investor confidence in RMB assets so that overseas central banks and other institutions chose to increase the share of RMB in their foreign exchange reserves,” said Feng Lin, an analyst with Golden Credit Rating International Co., Ltd.

Except for RMB, central banks across the world also increased the gold proportion in the foreign exchange reserves last year. According to the data released by the World Gold Council, the gold held by central banks worldwide has increased 463 tons in 2021, a year-on-year increase of 82 percent, marking the highest level of gold reserve in recent 30 years.

The recent positive correlation between RMB exchange rate and gold price fluctuation tends to increase, and the volatility of RMB exchange rate is lower, said industry insiders. They believed that global investor demand for RMB assets would further expand as global financial markets increasingly differentiate.


Most popular in 24h

MoreTop news


Back to top About Us | Jobs | Contact Us | Privacy Policy
Copyright ©1999-2022 All rights reserved.
Reproduction in whole or in part without permission is prohibited.
[网上传播视听节目许可证(0106168)] [京ICP证040655号]
[京公网安备 11010202009201号] [京ICP备05004340号-1]