Euro, Dollar Slide in Global FX Reserves
The currencies slumped to 15-year lows last year, according to European Central Bank
The euro and dollar both lost ground as international currencies last year, slumping to 15-year lows in their share of global foreign-exchange reserves, according to an annual report by the European Central Bank.
The share of the euro in globally disclosed foreign exchange reserves fell for a sixth straight year to 19.9%, the ECB said—the lowest level since 2000.
And while the dollar remained the pre-eminent global currency, its share of global foreign exchange reserves also slid by 0.9 percentage points in 2015 to 64.1%, its lowest share since 1999.
“The main drivers of international use of the euro were the additional unconventional monetary policy measures implemented by the ECB, the slower than-expected pace of normalization of the Federal Reserve’s monetary policy, and concerns about developments in China and [emerging markets] more generally,” the ECB wrote in the report.
ECB President Mario Draghi wrote that the changes took place amid heightened uncertainty around the world economy and “changing market expectations as to the path of monetary policy across major economies.”
“The euro remained the second most important currency…in the international monetary system, but with a significant gap to the U.S. dollar,” he wrote.
Source: WSJ
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