Mumbai, Oct. 3 -- International Monetary Fund or IMF has stated that US dollar's share of reserves held steady in second quarter when adjusted for FX moves. In a latest update, the fund has noted that data on the currency composition of global foreign exchange reserves, COFER, track how much of the world's reserves are held at central banks in different currencies-such as the US dollar, the euro, Japanese yen, Chinese renminbi, British pound, and others. The data are based on voluntary, confidential reports by 149 economies.

But a crucial detail is often overlooked: these shares are reported in US dollars. This means that if a country holds reserves in euros or yen, the value of those holdings is first converted into dollars before being...