Jul 2nd 2010, 15:05 by S.C. | LONDON
EVERY three months the IMF publishes data on the composition of official foreign exchange reserves. There are two things predictable about this release. One, the level of reserves continues to rise and two, renewed speculation about the role of the dollar as a global reserve currency.
This time round was no different. Total worldwide reserves stood at $8.3 trillion in the first quarter of 2010, up from $7.2 trillion during the same period last year. As a share of allocated reserves, the dollar's weight has fallen from 73% in 2001 to 61%. Even China, which makes up the bulk of the $3.7 trillion unallocated reserves, is thought to be diversifying away from the dollar.
But adding weight to the numbers are two reports—one from the Asian Development Bank and the other from the UN—calling for a new global reserve system. Both reports correctly point out that as a store of value, the dollar is too volatile. The dollar-dominated regime probably worsened the crisis due to a liquidity shortage, before the Fed opened swap lines with other banks. Rising deficits and slow growth in America are also making central bankers weary of holding additional US debt.
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