The IMF released its COFER data Friday night and it contained a surprise forAustralian dollar bears. Total foreign holdings of the battler rose in the March 2015 quarter to $113,834 million, up 4.1% in a quarter:
This is US dollar values, so despite the Aussie falling 8.2% from an average 85 cents in the Dec ’14 QTR to 78 cents in the Mar ’15 QTR, reserves accumulation rose. That suggests that central bank buying of the Aussie accelerated dramatically as prices fell.
Even more bizarre, emerging market currency reserves collapsed at the fastest pace in 20 years as US dollar liquidity dried up, from BNP Paribas:
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David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.