Dollar’s Share of Central Bank Reserves Climbs as Euro’s Falls

Dec. 31 (Bloomberg) -- The dollar’s share of foreign exchange reserves climbed in the third quarter as the currency rebounded and central banks sought the safety of the world’s leading reserve currency, data from the International Monetary Fund showed.

The dollar accounted for 64.6 percent of the reserves held by governments and central banks at the end of September, up from 63 percent at the end of June, the Washington-based lender said today. The dollar’s share had fallen in the prior two quarters after the U.S. currency’s exchange rate fell to a record against the euro.

The euro’s share of reserves fell to 25.5 percent from 26.7 percent, and the yen’s declined to 3.1 percent from 3.3 percent. The quarterly figures go back to 1999, the year the euro was introduced.

Total reserves held by governments fell to $6.9 trillion at the end of September from $7 trillion three months earlier. Central banks submitted figures on their currency allocations for $4.36 trillion of the total, the IMF said.