Competitive International Liquidity
--Dr.Debesh Bhowmik
We have noticed a fundamental change in the international
liquidity position.China ,now commands a largest share of international
liquidity.In terms of SDR, its foreign exchange reserves reached at the
unprecedented amount followed by Japan, Euro Area,and USA.Total reserves of
China stood at
2,168,585.894 million SDR
in comparison to 799306.721 million SDR of Japan,228502.488 million SDR of EU
and 96680.191 million SDR in 2012 where China, EU, USA faced increasing trends
of reserves but fell in Japan in 2012.The similar trends were seen in foreign
exchange reserves in terms of SDR during
2009-2012.All countries’ reserves in gold in fine troy ounces were more or less
unchanged and it did not affect the international liquidity because there is no
gold convertibility or gold exchange rate system in the world at present. But
in the IMF reserves position, Euro Area ranks the first position followed by
USA, Japan and China where the European and American dominance in IMF is clear
even now. Also, we found that in case of
SDR reserves, Euro Area holds the largest share followed by USA, Japan and
China. It is understood that only in 2012,Chinese reserves in the IMF
marginally fell and Japanese reserves position in all respects increased but
decreased in SDR holdings and dwindled foreign exchange reserves in terms of
SDR in 2012.Therefore,Chinese and Japanese control over the international
liquidity in terms of SDR is the new situation that gave USA dominance in
trouble. The unit of account of reserves in terms of SDR is questionable
because world payments mechanism is largely maintained through the exchange of
US Dollar. Are we transforming into SDR system from US Dollar in clearing
international liquidity? So,we have to wait for some time for the outcome of reforming
international monetary system.
Japan (Million )
|
|
|
2009
|
2010
|
2011
|
2012
|
|
Total Reserves
|
SDRs
|
652,926.207
|
690,126.788
|
820,373.250
|
799,306.721
|
|
Total Reserves Minus
Gold
|
SDRs
|
652,065.122
|
689,265.703
|
819,512.164
|
798,445.635
|
|
Gold
|
Fine Troy Ounces
|
24.602
|
24.602
|
24.602
|
24.602
|
|
Reserve Position in
the Fund
|
SDRs
|
2,751.248
|
2,992.343
|
11,189.153
|
8,887.154
|
|
SDR Holdings
|
SDRs
|
13,375.008
|
13,392.962
|
12,860.975
|
12,954.624
|
|
Foreign Exchange
|
SDRs
|
635,938.865
|
672,880.398
|
795,462.036
|
776,603.857
|
USA(million)
|
|
|
2009
|
2010
|
2011
|
2012
|
|
Total Reserves
|
SDRs
|
85,518.866
|
87,976.635
|
98,330.559
|
99,680.191
|
|
Total Reserves Minus
Gold
|
SDRs
|
76,366.405
|
78,824.174
|
89,178.098
|
90,527.729
|
|
Gold
|
Fine Troy Ounces
|
261.499
|
261.499
|
261.499
|
261.499
|
|
Reserve Position in
the Fund
|
SDRs
|
7,262.528
|
8,111.627
|
19,592.583
|
22,227.012
|
|
SDR Holdings
|
SDRs
|
36,878.209
|
36,898.149
|
35,794.962
|
35,818.621
|
|
Foreign Exchange
|
SDRs
|
32,225.668
|
33,814.398
|
33,790.553
|
32,482.095
|
Euro Area(million)
|
|
|
2009
|
2010
|
2011
|
2012
|
|
Total Reserves
|
SDRs
|
192,559.165
|
207,102.523
|
218,426.206
|
228,502.488
|
|
Total Reserves Minus
Gold
|
SDRs
|
180,407.869
|
194,958.850
|
206,286.599
|
216,368.233
|
|
Gold
|
Fine Troy Ounces
|
347.180
|
346.962
|
346.846
|
346.693
|
|
Reserve Position in
the Fund
|
SDRs
|
9,688.892
|
13,659.703
|
25,220.692
|
27,387.294
|
|
SDR Holdings
|
SDRs
|
46,706.536
|
46,802.748
|
45,493.920
|
45,279.005
|
|
Foreign Exchange
|
SDRs
|
124,011.342
|
134,495.360
|
135,571.144
|
143,167.107
|
China(million)
|
|
|
2009
|
2010
|
2011
|
2012
|
|
Total Reserves
|
SDRs
|
1,542,335.026
|
1,862,240.323
|
2,087,326.394
|
2,168,585.894
|
|
Total Reserves Minus
Gold
|
SDRs
|
1,541,148.876
|
1,861,054.173
|
2,086,140.244
|
2,167,399.744
|
|
Gold
|
Fine Troy Ounces
|
33.890
|
33.890
|
33.890
|
33.890
|
|
Reserve Position in
the Fund
|
SDRs
|
2,795.057
|
4,153.587
|
6,373.438
|
5,318.986
|
|
SDR Holdings
|
SDRs
|
7,979.644
|
8,015.753
|
7,722.150
|
7,388.758
|
|
Foreign Exchange
|
SDRs
|
1,530,374.175
|
1,848,884.833
|
2,072,044.657
|
2,154,692.001
|
Source-IMF.
