Standard Chartered: Reserve managers appear to be deliberately increasing their holdings of US dollars

ChainCatcher message, the claims regarding the end of the dollar's status as the global reserve currency may not be accurate. The International Monetary Fund (IMF) data for the first quarter shows that the total global foreign exchange reserves increased by $168 billion, of which 54% is in dollars.

Steve Englander, the global foreign exchange research head at Standard Chartered Bank, stated that during previous periods of pressure, reserve managers seemed to deliberately increase their dollar holdings to prevent a larger appreciation of their local currencies. Reserve managers may buy dollars when they are relatively cheap, while also anticipating future asset market turbulence, believing it is necessary to accumulate dollar reserves in advance. (Jin Shi)