The Chinese renminbi has increased its presence amongst the world’s currency reserves while the US dollar has seen its share diminish to a record low, according to research from JPMorgan.
The greenback’s share of global reserves stood at 59% in the fourth quarter of 2021, as compared to 62% at the start of 2020 and 65% in 2015.
“The proportion of reserves actively allocated to USD-denominated assets has declined by about 5% since 2018, and the pace has accelerated in recent quarters,” said JPMorgan analysts in a note released on Friday.
By contrast the latest IMF data indicates that the renminbi’s share of global forex reserves rose to a record high of 2.79% in the final quarter of 2021, as compared to 2.66% in the third quarter of last year.
“The European and US financial industries re gradually reaching a share view on decline of the US dollar system, while many industrial models think highly of the yuan’s internationalisation trend in the long run,” said Chen Jia, research fellow with the International Monetary Institute of Renmin University, to state-owned media.