Percentage of global currencies A reserve currency (or anchor currency) is a currency which is held in significant quantities by many governments and institutions as part of their foreign exchange reserves. It also tends to be the international pricing currency for products traded on a global market, such as oil, gold, etc. More recently, however, nations especially in Asia, have been stockpiling reserves in an effort to strengthen export competitiveness by weakening their own currencies, and also to contain quick and large inflows of capital, and buffer against financial crisis such as the Asian financial crisis. Image File history File links No higher resolution available. ...
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Foreign exchange reserves (also called Forex reserves) in a strict sense are only the foreign currency deposits held by central banks and monetary authorities. ...
Pumpjack pumping an oil well near Lubbock, Texas Ignacy Åukasiewicz - inventor of the refining of kerosene from crude oil. ...
GOLD refers to one of the following: GOLD (IEEE) is an IEEE program designed to garner more student members at the university level (Graduates of the Last Decade). ...
The Asian financial crisis was a financial crisis that started in July 1997 in Thailand and affected currencies, stock markets, and other asset prices in several Asian countries, many considered East Asian Tigers. ...
This permits the issuing country to purchase the commodities at a marginally cheaper rate than other nations, which must exchange their currency with each purchase and pay a transaction cost. (For major currencies, this transaction cost is negligible with respect to the price of the commodity.) It also permits the government issuing the currency to borrow money at a better rate, as there will always be a larger market for that currency than others.
Global currency reserves
International accumulation of foreign reserve currencies
(Percentage of global currency reserves held in the particular currency) | Currency | 1995 | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | | Euro | N/A | 17.9% | 18.8% | 19.8% | 24.2% | 25.3% | 24.9% | 24.3% | 25.2% | | French franc | 2.4% | 1.8% | 1.4% | 1.6% | N/A | | German Mark | 15.8% | 14.7% | 14.5% | 13.8% | N/A | | Japanese yen | 6.8% | 6.7% | 5.8% | 6.2% | 6.4% | 6.3% | 5.2% | 4.5% | 4.1% | 3.9% | 3.7% | 3.2% | | Pound sterling | 2.1% | 2.7% | 2.6% | 2.7% | 2.9% | 2.8% | 2.7% | 2.9% | 2.6% | 3.3% | 3.6% | 4.2% | | Swiss franc | 0.3% | 0.2% | 0.4% | 0.3% | 0.2% | 0.3% | 0.3% | 0.4% | 0.2% | 0.2% | 0.1% | 0.2% | | US dollar | 59.0% | 62.1% | 65.2% | 69.3% | 70.9% | 70.5% | 70.7% | 66.5% | 65.8% | 65.9% | 66.4% | 65.7% | | Other | 13.6% | 11.7% | 10.2% | 6.1% | 1.6% | 1.4% | 1.2% | 1.4% | 1.9% | 1.8% | 1.9% | 1.5% | Sources:
1995-1999 & 2006, IMF (International Monetary Fund): Currency Composition of Official Foreign Exchange Reserves
1999-2005, ECB (European Central Bank): The Accumulation of Foreign Reserves, Occasional Paper Series, Nr. 43 For other uses, see Euro (disambiguation). ...
ISO 4217 Code FRF User(s) Monaco, Andorra, France except New Caledonia, French Polynesia, and Wallis and Futuna ERM Since 13 March 1979 Fixed rate since 31 December 1998 Replaced by €, non cash 1 January 1999 Replaced by €, cash 1 January 2002 € = 6. ...
ISO 4217 Code DEM User(s) Germany, Montenegro, Kosovo ERM Since 13 March 1979 Fixed rate since 31 December 1998 Replaced by €, non cash 1 January 1999 Replaced by €, cash 1 January 2002 € = 1. ...
ISO 4217 Code JPY User(s) Japan Inflation -0. ...
“GBP†redirects here. ...
ISO 4217 Code CHF User(s) Switzerland, Liechtenstein, Campione dItalia Inflation 1. ...
USD redirects here. ...
IMF redirects here. ...
Headquarters Coordinates , , Established 1 January 1998 President Jean-Claude Trichet Central Bank of Austria, Belgium, France, Finland, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Slovenia, Spain Currency Euro ISO 4217 Code EUR Reserves €43bn directly, €338bn through the Eurosystem (including gold deposits). ...
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United States dollar The United States dollar is the most important reserve currency in the world today. Throughout the last decade, an average of two thirds of the total allocated foreign exchange reserves of countries have been in U.S. dollars. For this reason, the U.S. dollar is said to have "reserve currency status", making it somewhat easier for the United States to run higher trade deficits with greatly postponed economic impact (see currency crisis). Central bank reserves held in dollar-denominated debt, however, is relatively small compared to private holdings of such debt. If foreign holders of dollar-denominated assets decided to shift holdings to assets denominated in other currencies there could be serious consequences for the U.S. economy. Changes in the structure of the international financial system, however, typically occur only gradually. Thus, a large, sudden shift away from dollar reserve holdings is unlikely. USD redirects here. ...
A currency crisis (also known as a financial crisis) occurs when the value of a currency changes quickly, undermining its ability to serve as a medium of exchange or a store of value. ...
Euro The euro is currently the second most commonly held reserve currency, being approximately a quarter of allocated holdings. After World War II and the rebuilding of the German economy (see the Wirtschaftswunder), the German Deutsche Mark gained the status of the second most important reserve currency after the US dollar. When the euro was launched in 1999, replacing the Mark and other European currencies, it inherited the status of a major reserve currency from the Mark. Since then its contribution to official reserves has risen continually as banks seek to diversify their reserves and trade in the eurozone continues to expand.[1] The New York Times Book Review also referred to the euro as the "Deutsch-Mark by another name". For other uses, see Euro (disambiguation). ...
The term Wirtschaftswunder (English: economic miracle) designates the upturn experienced in the West German and Austrian economies after the Second World War. ...
The Deutsche Mark (DM, DEM) was the official currency of West and, from 1990, unified Germany. ...
The Eurozone (also called Euro Area, Eurosystem or Euroland) refers to the European Union member states that have adopted the euro currency union. ...
The New York Times is an internationally known daily newspaper published in New York City and distributed in the United States and many other nations worldwide. ...
Former Federal Reserve Chairman Alan Greenspan said in September 2007 that the euro could replace the U.S. dollar as the world's primary reserve currency. It is "absolutely conceivable that the euro will replace the dollar as reserve currency, or will be traded as an equally important reserve currency."[2] Econometrical analysis sugests, the Euro may replace the U.S. dollar as the major reserve currency by 2020 in case that: (1) the remaining EU members, including the UK adopt the Euro by 2020 or (2) the recent depreciation trend of the dollar persists into the future.[3] The Federal Reserve System is headquartered in the Eccles Building on Constitution Avenue in Washington, DC. The Federal Reserve System (also the Federal Reserve; informally The Fed) is the central banking system of the United States. ...
Alan Greenspan (born March 6, 1926 in New York City) is an American economist and was Chairman of the Board of Governors of the Federal Reserve of the United States from 1987 to 2006. ...
Pound sterling The United Kingdom's pound sterling was the primary reserve currency of much of the world in the 18th and 19th centuries. The dire economic cost of fighting the Second World War, the increasing dominance of the USA in world economics and economic weakness at various intervals during the second half of the 20th Century in the UK resulted in Sterling losing its status as the world's most powerful currency. “GBP†redirects here. ...
In mid 2006 it was the third most widely held reserve currency, having seen a resurgence in popularity in recent years.[4] Analysts say this resurgence is caused by carry-trade investors considering the pound as a stable high-yield proxy to the Euro.[5] The carry of an asset is the return obtained from holding it (if positive), or the cost with holding it (if negative). ...
Other notable reserve currencies The Japanese yen was considered as the third most important reserve currency for several decades, but has recently been on the decline and has now been overtaken by sterling. ISO 4217 Code JPY User(s) Japan Inflation -0. ...
The Swiss franc is often said to be a reserve currency as well, due to its stability, although the share of all foreign exchange reserves held in Swiss francs is typically just around or even below 0.3%. ISO 4217 Code CHF User(s) Switzerland, Liechtenstein, Campione dItalia Inflation 1. ...
Other nations and groups of nations have expressed their desire to see their currencies (or future currencies) be used as reserve currencies, such as Russia, and the Gulf Cooperation Council. ...
The G8 also frequently issues public statements as to exchange rates, though with the exception of Japan, the member states are impotent in their ability to directly affect rates.[clarify] In the past, however, its predecessor bodies could directly manipulate rates to reverse large trade deficits (see Plaza Accord). Group of Eight redirects here. ...
Balance of trade figures are the sum of the money gained by a given economy by selling exports, minus the cost of buying imports. ...
The Plaza Accord was an agreement signed on September 22, 1985 at the Plaza Hotel in New York City by 5 nations - France, West Germany, Japan, the United States and the United Kingdom. ...
The top reserve currency is generally selected by the banking community for the strength and stability of the economy in which it is used. Thus, as a currency becomes less stable, or its economy becomes relatively less dominant, bankers may over time abandon it for a currency issued by a larger or more stable economy. This can take a relatively long time, as recognition is important in determining a reserve currency. For example, it took many years after the United States overtook the UK as the world's largest economy before the dollar overtook Sterling as the dominant global reserve currency. For other uses, see Bank (disambiguation). ...
See also Foreign exchange reserves (also called Forex reserves) in a strict sense are only the foreign currency deposits held by central banks and monetary authorities. ...
It has been suggested that Soft currency be merged into this article or section. ...
In the foreign exchange market and international finance, a world currency or global currency refers to a currency in which the vast majority of international transactions take place and which serves as the worlds primary reserve currency. ...
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