Forex Flash: FX Reserves again expand QoQ – NAB
Forex pairs in this Article »
EUR/CHF
FXstreet.com (Barcelona) - According to the NAB Research Team, "Global FX reserves expanded by a further $249 billion in Q3 to $10.78 trillion - after adjusting for FX valuation changes, we estimate reserves still grew by close to $200 billion."
The allocation to the EUR fell further in Q3 and accounts for its lowest proportion of global reserves since 2002. Allocations to GBP, JPY and 'other' currencies all rose, and by more than simple reserves rebalancing would have suggested.
Moreover, "We estimate reserve manger demand for AUD and CAD in Q3 may have been in the order of $13.0bn for each." This is the largest quarterly increase since Q2 2011 when reserves expanded by $382.8 billion. The SNB was part of the story in Q3; their reserves grew by the equivalent of $79.0 billion during the quarter as a result of intervention to defend the 1.20 floor on the EURCHF. The SNB nevertheless only accounts for about one third of the total increase.
The allocation to the EUR fell further in Q3 and accounts for its lowest proportion of global reserves since 2002. Allocations to GBP, JPY and 'other' currencies all rose, and by more than simple reserves rebalancing would have suggested.
Moreover, "We estimate reserve manger demand for AUD and CAD in Q3 may have been in the order of $13.0bn for each." This is the largest quarterly increase since Q2 2011 when reserves expanded by $382.8 billion. The SNB was part of the story in Q3; their reserves grew by the equivalent of $79.0 billion during the quarter as a result of intervention to defend the 1.20 floor on the EURCHF. The SNB nevertheless only accounts for about one third of the total increase.
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