Author name: moderat ereport

The Hill

Senate Democrats join fired State Department employees to rally against layoffs

Senate Democrats on Friday joined State Department employees in protest of the Trump administration’s decision to layoff 1,300 employees this week. “This is not America first. This is America in retreat,” Sen. Chris Van Hollen (D-Md.) said on Friday at a protest outside the department’s headquarters in Washington. “And we don’t want America retreating, do we?”…

Economic News

Gold and FX Reserves in 2025Q1

Based on IMF data (COFER, IFS): Figure 1: USD shares of fx  (blue bars), EUR (tan), all other (gray). USD(EUR) share assumes 60%(35%) of unallocated reserves are in USD(EUR). Source: IMF COFER, and author’s calculations.  The drop in USD reserves out of total FX reserves is not apparent. However, gold has taken on a heightened importance in recent years. Taking this into account, we have Figure 2. Figure 2: USD shares of fx and gold reserves (blue bars), EUR (tan), all other (gray), and gold (yellow). USD(EUR) share assumes 60%(35%) of unallocated reserves are in USD(EUR). Assumes quantity of gold holdings stay constant in 2025Q, and observed . Source: IMF COFER, World Gold Council, and author’s calculations.  To the extent that total reserves are the relevant measure, the dollar has dropped by 1.4 percentage points in 2025Q1; the standard deviation of changes is 0.6 ppts. If central banks on net acquired gold in Q1 (World Gold Council suggests 50 tonnes whereas I assumed 0 tonnes), then the drop would be even larger.

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