What determined the sharp increase in currency reserves, especially between 2002 and 2004, was the exchange rate policy of some Asian countries seeking to support their currencies’ peg to the US dollar. This meant that, for a number of countries, the central banks’ currency purchases were, at times, the main vehicle for investment abroad.
5 Of the ten largest holders of currency reserves, eight are countries in Asia. China and Japan alone account for a total of roughly 40% of the global stock of those reserves. III Bretton Woods II Against the backdrop of these developments, it is only a small step to the idea of a revived Bretton Woods.