
Central Bank Currency Reserves: Understanding Who Holds What and Why
In our previous article, we explored what currency reserves are and how they help promote global trade and economic stability. In this piece, we will be looking at which currencies and assets are the most widely used ones for reserves and which central banks choose to hold what kind of reserves.
Globally, currency reserves are dominated by a large allocation to US dollars and also precious metals, especially gold. As gold is traded primarily in US dollars, this underlines the de-facto standard
Globally, currency reserves are dominated by a large allocation to US dollars and also precious metals, especially gold. As gold is traded primarily in US dollars, this underlines the de-facto standard