FINBRIDGEFIELD NOTES
Other people’s money, kept in a nation’s drawer.A wooden drawer slightly open, with papers of different colours stacked inside.Q.09

What are foreign exchange reserves?

Other people’s money, kept in a nation’s drawer.

Central banks and governments keep other countries’ currencies. Worldwide, that drawer holds more than $13 trillion. The currencies inside, and how they are counted.

In 30 seconds

Foreign money that a nation keeps.

Foreign exchange reserves are assets in foreign currencies held by a country’s central bank or government.

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Reserves

The IMF’s statistics (COFER) compile, by currency, the foreign exchange reserves held by each country’s monetary authorities.[1][2]

The world’s drawer holds $13 trillion.

Taken together, the world’s foreign exchange reserves exceed $13 trillion.

$13.10 trillion

Total world foreign exchange reserves (first quarter of 2026)

Down from the previous quarter (IMF).

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The total

According to the IMF, world foreign exchange reserves fell to $13.10 trillion in the first quarter of 2026.[1]

What colours are inside the drawer?

Reserves are divided among several currencies.

57.13%

US dollar share of world foreign exchange reserves (first quarter of 2026)

The euro 20.03%, the yen 5.44%, the renminbi 1.99%.

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Breakdown by currency

In the first quarter of 2026 the shares were 57.13% for the US dollar, 20.03% for the euro, 5.44% for the yen and 1.99% for the renminbi.[1]

Same contents, moving shares.

When exchange rates move, the value of each currency changes, and so do the shares.

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Exchange-rate valuation

The IMF explains that about half of the rise in the dollar’s share in the first quarter of 2026 came from a valuation effect of the stronger dollar.[1]

A change in counting

Since the third quarter of 2025, the portion with an unknown currency has been removed, and 100% of reserves are shown by currency.[1]

A scale for reading what comes next.

A scale for reading foreign exchange reserves.

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The total

Whether the world’s reserves grow or shrink.[1]

The mix

How the shares of the US dollar, euro, yen and renminbi move.[1]

Exchange-rate effects

Whether a change in shares comes from buying and selling or from exchange-rate valuation.[1]

This is not advice

This edition explains how foreign exchange reserves work. It does not recommend buying or selling any currency.

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What this edition cannot tell you

Sources