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RMB internationalisation remains slow, based on IMF’s Cofer, despite Belt and Road use

Goola Warden
Goola Warden • 4 min read
RMB internationalisation remains slow, based on IMF’s Cofer, despite Belt and Road use
RMB internationalisation remains slow but likely to continue. AUD, CAD popular as foreign exchange reserve currencies. Photo: Bloomberg
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According to the International Monetary Fund’s World Currency Composition of Official Foreign Exchange Reserves (Cofer) report up to 4Q2023, the share of official foreign exchange reserves held in renminbi (RMB) has decreased y-o-y. 

Since the RMB appeared in 2016 in the Cofer league table, its share has risen from 1.09% in 4Q2016 to 2.29% in 4Q2023. However, since its peak of 2.83% of global foreign exchange reserves in 1Q2022, the RMB has fallen to 2.29% as of 4Q2023. 

Despite the weaponisation of the US dollar during Donald Trump’s presidency and the sanctions on Russia following its full-scale invasion of Ukraine in February 2022, the US dollar has remained relatively stable at 58% of global foreign exchange reserves. This is only a slight decline from 63% in the fourth quarter of 2016.

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