This is an image of the RMB’s role as a reserve currency and an instrument currency, from an ongoing project Jeffrey Frankel and This is Herowe examine the determinants of reserve holdings by individual central banks.
Figure 1: Simple average of RMB holdings by central banks reporting RMB holdings Macaulay Database (blue), average RMB holdings of central banks reporting their holdings to the International Monetary Fund (red), RMB turnover (full score 1) (green), GDP as a share of world GDP (yellow), Simple average of trade share with China (purple). Turnover is linearly interpolated between BIS triennial surveys. COFER holds shares in the first three quarters of 2023. source: It-McCauley DatabaseCOFER, BIS, author's calculations.
Note that COFER renminbi holdings are below the simple average of renminbi holdings, meaning that, on average, smaller central banks hold more renminbi. Of further note, yuan holdings appear to be stalling in 2023.
