By the end of September 2019, Chinese renminbi (RMB) had accounted for 2.01% of global foreign exchange reserve, with the proportion hitting a new high since October 2016, when IMF (International Monetary Fund) reported RMB reserve, according to latest data IMF issued recently. More specifically, the scale of RMB reserve totaled US$219.62 billion.

   The increase could be mainly attributed to both growing interest of the world’s foreign exchange reserve management agencies and soaring share of China’s economy in the world’s. The world’s second largest economy, the largest exporter and the second largest importer, China has taken up around 11% of global trade in goods, higher than previous 8.7%.

   Many countries (excluding the US) are reducing US dollar reserve and increasing other foreign currency reserve to diversify foreign exchange reserve although US dollar remains the world’s dominant reserve currency. Hence, share of US dollar in global foreign exchange reserve was down from 66% in 2014 to 61.78% in 3Q 2019.