Global foreign exchange reserves in dollars increased in Q1 — Standard Chartered

Global official dollar reserves increased significantly in Q1 despite pressure on the US currency, Standard Chartered notes.

Simultaneously, the IMF's Composition of Official Foreign Exchange Reserves (COFER) data showed growth in global reserve volumes. In the first quarter of this year, the indicator rose by $168 billion. Of this amount, $90 billion was allocated to the United States. However, due to the depreciation of the US currency, the value of non-dollar reserves also increased.

As Standard Chartered analysts note, these changes may have been caused by reserve managers' bulk dollar purchases during periods of its low valuation. The company's experts believe this was an attempt to hedge against potential financial market turbulence.

Currently, the bank's experts are maintaining a cautious approach while awaiting the publication of the final official data on currency reserves.