Brad W. Setser
That is the last disclosed data point, but careful analysis of the U.S. Treasury’s data essentially rules out a significant rise in the dollar share of China’s formal reserves. The U.S. data is consistent with either a bit of a fall or very aggressive use of non-U.S. custodians over the last five years.
So, China has de-dollarized? Not exactly.
The big fall in the dollar share of China reserves (from 79 to 59 percent) occurred between 2005 and 2012 (though China only disclosed the 2015 number) and during that period China’s toal reserves went from $800 to close to well over $3 trillion and its actual dollars continued to rise.
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