Global reserves have fallen markedly among China and oil exporters - SocGen

Alvin T. Tan, Research Analyst at Societe Generale, suggests that the global reserves picture is difficult to generalise and the reserves have fallen markedly among China and oil exporters, but not significantly so elsewhere.

Key Quotes

“Looking at the net international investment position statistics alongside reserves can provide a fuller picture of external vulnerability. A huge positive NIIP contributes to the yen’s status as a safe haven currency, and also lessens China’s external vulnerability despite the structural growth slowdown. But the NIIP data also show that some major EM countries’ large reserve holdings might not be as impressive as at first glance.”