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Aug 2026

Dynamics of the currency composition of central bank reserves

We examine how macroeconomic and geopolitical developments in the United States, the euro area, and China affect the currency composition of central banks’ foreign exchange reserves. Using an unbalanced panel of reserve shares for 53 countries over 1999–2023, we estimate a constrained system of equations that explicitl...

Deborah Gefang, Stephen G. Hall, G. Tavlas · 0 citations

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