What do the new COFER data tell us about China’s reserves?

China appears to hold a larger than average share of its fx reserves in US dollars, UK pounds and Australian dollars at the expense of euros and the Japanese yen. This is the conclusion we have tentatively reached on the basis of the latest currency composition of foreign exchange reserves (COFER) data published by the IMF. This may be of interest to those keen to understand the asset allocation of the world’s largest holder of fx reserves at time when it has been reducing them to shore up the renminbi.