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Forex pairs in this Article » EUR/USD
FXstreet.com (London) - Nomura Strategists Jens Nordvig and Ankit Sahni note that late last week, the IMF released its “Composition of Official Foreign Exchange Reserves” (COFER) data for Q1 2013.

They begin by noting that the data shows that the Euro share of central bank reserves has continued to decline in both emerging and advanced economies, though valuation adjusted levels show some inflows. In addition, they also noted details on AUD and CAD holdings, which are about 1.5% each of world reserves, both of which were at the low end of expectations, though both saw further inflows in Q1. They note that IMF data indicates a total increase in FX reserves of $136bn for Q1 2013, but there was actually a small decline in allocated reserves, i.e. reserves for which the currency breakdown is known. They write, “This is not altogether surprising given the composition of reserve creation seen in Q1.” However, they finish by noting that the rebalancing of existing reserves is very important for FX markets, and this report provides valuable information.
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