According to the International Reserve Management Report released by the Central Bank of Brazil on March 31, the share of the renminbi in Brazil’s foreign exchange reserves in 2021 will rise to 4.99% from 1.21% in the previous year, the highest level since the renminbi entered its currency basket in 2019.
The report also showed that the US dollar’s share of Brazil’s foreign exchange reserves fell by 5.69 percentage points from 2020 to 80.34%, the lowest level since 2014; the share of the euro also increased decline, from 7.85% in 2020 to 5.04% in 2021.
The report indicates that the yields of assets denominated in RMB are higher than those denominated in US dollars.
Brazil’s “Economic Value” pointed out that in the context of increasing inflationary pressure and tightening monetary policy in some major economies around the world, the Central Bank of Brazil increased the RMB’s foreign exchange reserves in Brazil share in. Local economists said the renminbi’s share in global foreign exchange reserves is on the rise.
(Originally titled “The proportion of RMB in the central bank’s foreign reserves increased significantly last year”)