(Reuters) - The U.S. dollar’s share of currency reserves reported to the International Monetary Fund fell in the second quarter to its lowest level since the end of 2013, while the yen’s share of reserves grew to the largest in nearly two decades, data released on Monday showed.
Reserves held in U.S. dollars totaled $6.79 trillion, or 61.63% of allocated reserves, in the second quarter, compared with $6.74 trillion, or 61.86%, in the first quarter.
This was the greenback’s smallest share of overall reserves since the fourth quarter of 2013 when it was 61.27%.
Total allocated reserves increased to $11.02 trillion in the second quarter from $10.90 trillion in the previous quarter.
Global reserves are assets of central banks held in different currencies, primarily used to support their liabilities. Central banks sometimes use reserves to help support their respective currencies.
(GRAPHIC: Currency composition of FX reserves: here[1])
The share of foreign exchange reserves in the Japanese yen, the euro and the Chinese yuan all increased from the previous quarter, extending a recent trend where the dollar’s share of currency reserves has declined at the expense of these currencies.
“With the yuan becoming a reserve currency with the IMF’s blessing, it means loans and things that were not denominated in yuan are now prevalent,” said Juan Perez, senior currency trader with Tempus Inc in Washington.
“Additionally, euro and yen increased in the reserves of other banks who saw the euro as a safe-haven because of the...