FX Reserves: 2015 A Year Of Drawdowns

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Rupert Hargreaves
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Updated on

FX Reserves  2015 was the year of the FX reserve drawdown. In an attempt to protect currency pegs and fill gaps in budgets left by falling oil prices, EM central banks’ reserves declined significantly during 2015. Although, the declines appear to have stabilized on aggregate, at least for now — according to Goldman Sachs’ “Top of Mind” end of year Global Macro Research report. The charts below illustrate the point perfectly. Key emerging markets such as China, Russia, Turkey, Brazil, Saudi Arabia and Mexico, have all seen the total value of their FX reserves, minus gold, fall from the multi-year highs reported during 2014. (click…

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk