Israel Cuts US Dollar Holdings, Adds Chinese Yuan To Its $206 Billion Reserves

Israel’s central bank has made the biggest reallocations to its foreign currency reserves in over a decade. They will be slashing their reserves for the US dollar and euro to make room for the Chinese yuan, Japanese yen, and Canadian and Australian dollars.

Including the British pound, the Bank of Israel will now have seven currencies in its foreign exchange holdings that at the end of March were worth over US$206 billion according to Bloomberg. The country’s foreign exchange stockpile, which has surpassed a third of its gross domestic product, breached the US$200-billion mark for the first time ever in 2021.

The 2022 allocations bring down the US dollar’s share from 66.5% to 61%, and the euro’s share will be slashed from 30.8% to 20%, the lowest in a decade. The pound, on the other hand, will make up almost double its 2021 share from 2.7% to 5%.

According to the bank’s annual report, allocations of the new additions will see the yen accounting for 5%, Canadian and Australian dollars at 3.5% each, and the yuan at 2%.

This new currency configuration sets a standard that’s closer to the rest of the world and reflects Israel’s changing trade flows. According to Bloomberg, while Israel’s biggest trade partner is still the US, its overall volumes with the Asian economy have almost doubled from 2016 to 2021.

According to the International Monetary Fund, the US dollar’s share of global currency reserves is at its lowest in over 25 years.

% of currency composition of global allocated foreign exchange reserves
Source: IMF

The yuan’s share, while still minuscule compared to the US dollar, meanwhile continues to enjoy steady growth.


Information for this briefing was found via Bloomberg and the sources mentioned. The author has no securities or affiliations related to this organization. Views expressed within are solely that of the author. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Silver’s Finally Breaking the System | Keith Neumeyer – First Majestic

The Best News for Gold Was the Drop! – Peter Grandich

McEwen Copper: The Los Azules Feasibility Study

Recommended

Silver47 Completes Property-Wide Geochemical, Rock Sampling Program At Adams Plateau, Identifies Numerous Targets

Altamira Gold Identifies Presence Of Second Mineralized Porphyry Body At Cajueiro

Related News

Milei Government Ends Financial Surveillance to Ignite Dollarisation

Argentina has announced the sweeping rollback of financial reporting requirements in a bid to mobilize...

Friday, May 23, 2025, 02:15:00 PM

Brazil Says BRICS To Pause Unified Currency Push

Brazil announces that it decided not to press forward with a common BRICS currency this...

Thursday, February 13, 2025, 12:27:00 PM

BREAKING: Iran Launches Missile Attack Against Israel

Iran has launched multiple waves of ballistic missiles against Israel today, attacking the nation in...

Tuesday, October 1, 2024, 01:25:10 PM

China’s Foreign Reserves Jump to $3.22 Trillion Amid Weakening US Dollar

China’s foreign currency and gold reserves jumped by more than forecasted in May, amid a...

Thursday, June 10, 2021, 11:10:00 AM

Ray Dalio Says A New World Order Is Coming As China Poised To Become An Economic Superpower

The world might be heading into a new world order as history points out, according...

Tuesday, March 29, 2022, 05:03:00 PM