Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-World Total Foreign Exchange Holdings has hit N10.9 trillion from 1995 to 2012 according to data obtained from the International Monetary Fund (IMF) Statistics Department Currency Composition of Official Foreign Exchange Reserves (COFER) and International Financial Statistics (IFS).

According to the IMF, the statistics last updated March 29, 2013, Worlds Total Forex Holdings was $1.38 trillion in year 1995 compared to $10.9 trillion in year 2012; indicating an increase of 687.32 percent (687.32%) over the 17 years review period.

Similarly, Total Forex Holdings of Advanced Economies was $3.690 trillion in 2012 compared to $932 billion in 1995; showing an increase of 295.9% in the review period.

In the same vein, the IMF and IFS reported Total Forex Holdings for Emerging and Developing Economies was $7.245 trillion in 2012 compared to $457.4 billion recorded in 1995; representing a rise in Total Forex Holdings of 1483.95% in the period under review.

The IMF affirms that COFER is its database that keeps end-of-period quarterly data on the currency composition of official Foreign Exchange Reserves.

The currencies identified in COFER are the U.S. Dollar, Euro, Pound Sterling, Japanese Yen, Swiss Francs, and other currencies.

However, before the Euro was introduced in 1999, the European currencies identified separately were European Currency Unit (ECU), Deutsche Mark, French Franc, and Netherlands Guilder.

The IMF says that Foreign Exchange Reserves in COFER consist of the Monetary Authorities’ claims on nonresidents in the form of Foreign Banknotes, Bank Deposits, Treasury Bills, Short- and Long-term Government Securities, and other claims usable in the event of balance of payments needs.

“Foreign Exchange Reserves in COFER do not include holdings of a currency by the issuing country. For instance, the U.S. Dollar Assets of the Federal Reserve and the Euro Assets of the European Central Bank and member countries of the European Economic and Monetary Union are not Foreign Exchange Reserves” the IMF said.

The IMF says the definition of Foreign Exchange Reserves in COFER is the same as that in the IMF109 and International Financial Statistics (IFS).

“COFER data are reported on a voluntary basis. At present, there are 144 reporters, consisting of member countries of the IMF, non-member countries/economies, and other Foreign Exchange Reserves holding entities” the IMF said.

The classification of countries in COFER (as advanced economies or emerging and developing economies) follows what is currently used in IFS world tables.

The IMF says at the present, 34 advanced economies and 109 emerging and developing economies report to COFER.

Click here to download COFER update from the IMF and IFS