{
  "title": "The Currency Composition of Foreign Exchange Reserves: Retrospect and Prospect",
  "publication": "IMF Working Papers, July 1, 2000",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/the-currency-composition-of-foreign-exchange-reserves-retrospect-and-prospect-3693",
  "canonical": "https://www.imf.org/en/publications/wp/issues/2016/12/30/the-currency-composition-of-foreign-exchange-reserves-retrospect-and-prospect-3693",
  "overlayPath": "/en/publications/wp/issues/2016/12/30/the-currency-composition-of-foreign-exchange-reserves-retrospect-and-prospect-3693/index.md",
  "summary": "This paper examines the determinants of the currency composition of international reserves. Our single most important finding is the striking stability over time of the relationship between the demand for reserves denominated in different currencies and its principal determinants: trade flows, finan",
  "sections": [
    {
      "heading": "Summary and central conclusion",
      "content": "- The paper examines the determinants of the currency composition of international reserves.\n- Single most important finding: the striking stability over time of the relationship between the demand for reserves denominated in different currencies and its principal determinants: trade flows, financial flows and currency pegs.\n- This stability contrasts sharply with recent predictions of sharp shifts in the currency composition of central banks’ holdings of foreign exchange.\n- Interpretive message: the international monetary system is in a mode of gradual, continuous evolution, not of rapid, discontinuous change."
    },
    {
      "heading": "Determinants analyzed",
      "content": "- Trade flows\n- Financial flows\n- Currency pegs"
    },
    {
      "heading": "Key findings and implications",
      "content": "- Stability: The relationship between currency-denominated reserve demand and the principal determinants has exhibited striking stability over time.\n- Contrast with forecasts: Recent predictions of sharp shifts in reserve currency composition are not supported by the observed stability.\n- Policy implication: Expect gradual, continuous evolution in the international monetary system rather than rapid, discontinuous change.\n\n---\n\n Content in this bundle\n\n- The Currency Composition of Foreign Exchange Reserves: Retrospect and Prospect - WP/00/131\n  - The Currency Composition of Foreign Exchange Reserves: Retrospect and Prospect - WP/00/131 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - The Currency Composition of Foreign Exchange Reserves: Retrospect and Prospect - WP/00/131 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/the-currency-composition-of-foreign-exchange-reserves-retrospect-and-prospect-3693"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/wp/issues/2016/12/30/the-currency-composition-of-foreign-exchange-reserves-retrospect-and-prospect-3693/index.md)",
    "[Structured JSON version](/en/publications/wp/issues/2016/12/30/the-currency-composition-of-foreign-exchange-reserves-retrospect-and-prospect-3693/index.json)",
    "[Bundle manifest](/en/publications/wp/issues/2016/12/30/the-currency-composition-of-foreign-exchange-reserves-retrospect-and-prospect-3693/bundle-manifest.json)",
    "Authors: Barry J. Eichengreen, Donald J Mathieson",
    "Published: July 1, 2000",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451855272.001",
    "The paper examines the determinants of the currency composition of international reserves.",
    "Single most important finding: the striking stability over time of the relationship between the demand for reserves denominated in different currencies and its principal determinants: trade flows, financial flows and currency pegs.",
    "This stability contrasts sharply with recent predictions of sharp shifts in the currency composition of central banks’ holdings of foreign exchange.",
    "Interpretive message: the international monetary system is in a mode of gradual, continuous evolution, not of rapid, discontinuous change.",
    "Trade flows",
    "Financial flows",
    "Currency pegs",
    "Stability: The relationship between currency-denominated reserve demand and the principal determinants has exhibited striking stability over time.",
    "Contrast with forecasts: Recent predictions of sharp shifts in reserve currency composition are not supported by the observed stability.",
    "Policy implication: Expect gradual, continuous evolution in the international monetary system rather than rapid, discontinuous change.",
    "**The Currency Composition of Foreign Exchange Reserves: Retrospect and Prospect - WP/00/131**"
  ],
  "related": [
    {
      "title": "The Currency Composition of Foreign Exchange Reserves: Retrospect and Prospect - WP/00/131",
      "role": "document",
      "sourceUrl": "https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2000/_wp00131.pdf",
      "summary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2000/_wp00131.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2000/_wp00131.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/wp/issues/2016/12/30/the-currency-composition-of-foreign-exchange-reserves-retrospect-and-prospect-3693/index.md",
    "json": "/en/publications/wp/issues/2016/12/30/the-currency-composition-of-foreign-exchange-reserves-retrospect-and-prospect-3693/index.json",
    "bundleManifest": "/en/publications/wp/issues/2016/12/30/the-currency-composition-of-foreign-exchange-reserves-retrospect-and-prospect-3693/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-17T07:41:21.353Z"
}