(Reuters) The dollar’s share of currency reserves reported to the International Monetary Fund rose in the third quarter to its highest level in a year, while the yen’s share of reserves grew to the largest in two decades, IMF data showed.
The dollar remains the world’s dominant reserve currency but central banks around the globe have in recent years made a push to diversify their reserves away from the U.S. currency.
“I do think that the dollar will continue to very gradually cede some of its power and central banks will continue to diversify away from it, but the greenback will remain the predominate currency for settling international trade so it will continue to represent the bulk of reserves for the long term,” said John Doyle, vice president for dealing and trading at Monex Inc in Washington.
