China-Singapore Jingwei Client, December 25. According to Reuters' Chinese website on the 25th, the International Monetary Fund (IMF) released data on Thursday showing that the U.S. dollar accounted for the second largest share of foreign exchange reserves reported to it in the third quarter. The 61.2% in the quarter fell to 60.4%.

  The U.S. dollar still accounts for the largest share of foreign exchange reserves held by central banks around the world.

A year ago, the U.S. dollar accounted for 61.5% of global foreign reserves, and this share has fallen for two consecutive quarters.

  IMF data also showed that global foreign exchange reserves rose to a record US$12.254 trillion in the third quarter, higher than the US$12.012 trillion in the second quarter.

In the third quarter, total US dollar foreign exchange reserves were US$6.937 trillion, accounting for 60.4% of the allocated foreign exchange reserves; US dollar reserves in the second quarter were US$6.899 trillion, accounting for 61.2%.

  The report pointed out that some analysts questioned whether the U.S. dollar can maintain the dominant position of the reserve currency because the geopolitical power of the United States is weakening, the debt burden is heavy, and the emergence of alternative currencies.

  David Rosenberg, chief economist and strategist at Rosenberg Research, stated in his latest research report, “It is true that the dollar will one day lose its status, just like all the global reserve currencies before it, but this happens in our lifetime. The probability is extremely low."

  He added, “The dominance of the U.S. dollar is overwhelming, and even after the new crown pneumonia epidemic, it shows no signs of disappearing immediately.”

  Since the beginning of this year, the U.S. dollar exchange rate has fallen by 6.4%, the worst annual performance since 2017.

Rosenberg believes that the U.S. dollar is currently in a cyclical bear market and is not on the verge of collapse.

  According to IMF data, the euro's share of global foreign exchange reserves remained stable at 20.5% in the third quarter, compared with 20.1% in the second quarter.

At its peak in 2009, the euro accounted for 28% of global foreign exchange reserves.

(Zhongxin Jingwei APP)