It's Official, Central Banks Are Fleeing The Dollar

Central Bank Holdings

Despite whatever verbal signs of support central banks may be giving the dollar, they’re in fact fleeing it.

In the second quarter of 2009, central banks put 63% of their new reserves in euros and yen. This is a huge change from past amounts.

Bloomberg: The dollar’s 37 per cent share of new reserves fell from about a 63 per cent average since 1999. Englander concluded in a report that the trend “accelerated” in the third quarter. He said in an interview that “for the next couple of months, the forces are still in place” for continued diversification.

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