While our liquid reserves are diversified across currencies, more than half is held in US dollars, because of the greater liquidity of US-dollar markets and since potential foreign currency needs are most likely to be in US dollars.
The remainder is held in euros, pound sterling and Japanese yen.3 We have explored the possibility of adding other currencies but decided against doing so because they were less liquid and there were fewer investment options. Let me expand on the point about asset-liability matching. Our liquid foreign reserves are held primarily in the Exchange Fund Account (EFA).