The April 2026 rise in Asian foreign exchange reserves is best understood as a portfolio valuation story, not as proof that central banks suddenly accumulated large new piles of dollars. Official reserves can include assets in several currencies, and when the U.S. dollar weakens, the dollar value of non-dollar holdings can rise even if the underlying portfolio has not changed much [24][
17][
34].
The main driver: weaker-dollar valuation gains
The IMF’s COFER dataset tracks official foreign exchange reserves across the U.S. dollar, euro, Chinese renminbi, Japanese yen, pound sterling, Australian dollar, Canadian dollar, Swiss franc and other currencies [24]. That matters because reserve totals are commonly discussed in dollar terms, while the assets themselves may be denominated in multiple currencies.
Late-April 2026 market commentary described the U.S. dollar as weakening as expectations for Federal Reserve rate cuts rose and global risk sentiment improved [2]. In that environment, euro-, yen-, sterling- or other non-dollar reserve assets translate into a higher dollar amount. South Korea’s central-bank reporting made this mechanism explicit: the dollar’s decline against major currencies increased the dollar-denominated value of non-dollar assets .




