Bulletin – September Quarter 2017 Trends in Global Foreign Currency Reserves Abstract

Over the decade to 2014, global foreign currency reserves doubled relative to GDP, though balances have declined a little since then. Accompanying this growth has been a shift in the composition of reserves towards higher-yielding assets, including equities and non-traditional reserve currencies, such as the Australian dollar. This article examines the overall growth trend as well as the potential causes of the compositional shift in reserves, including a decline in yields offered by traditional reserve assets and higher reserve balances.

View the article