14446
Euro Global Reserve Status Threatened
World Economy

Euro Global Reserve Status Threatened

Fresh data from the International Monetary Fund (IMF) show central banks worldwide reduced their euro holdings by the most on record last year, anticipating losses caused by massive quantitative easing carried out by the European Central Bank (ECB).
The euro now represents just 22% of global reserves, a significant decline from 28% before the eurozone financial crisis five years ago. Meanwhile, dollar and yen holdings have both expanded, FXStreet reported.
According to the IMF’s data, of the $6.1 trillion of reserves for which central banks specify a currency, the proportion of euros fell in every quarter of 2014.
  Dollar in Focus
This week, the finance ministers and central bank governors of the world descend on Washington for the spring meetings of the World Bank and the International Monetary Fund. As always, it will be a bit of a circus, with lots of “bilateral” meetings aimed at resolving specific countries’ problems — Ukraine and Russia, for example, and of course the eurozone’s problem child, Greece.
There’ll be polite differences of opinion expressed over China’s sponsorship of a new development bank that’s seen as a competitor to the World Bank and over Beijing’s desire to have the yuan treated as a reserve currency by the IMF. Most important, there’s a new global macro context giving greater relevance than normal to these meetings, namely the fact that the dollar has surged over the past year as US monetary policy has diverged from others.
Whatever is said about that is likely to be carefully worded — officials don’t want the market to keep treating the dollar as a one way upward bet, but neither do they want to send a signal that might trigger a stampede out of the greenback.

 

Short URL : http://goo.gl/uXgNKE

You can also read ...

French Foreign Minister Jean-Yves Le Drian addresses CEDRE Conference in Paris on April 6, with Lebanese Prime Minister Saad Hariri on his right.
With the FIFA World Cup over and French victory secured,...
Dubai’s new business licenses in the second quarter of 2018 were down 26% from the same period in 2016.
In Dubai’s posh Jumeirah Beach residence district, luxury...
Handout picture shows IMF Managing Director Christine Lagarde on a screen as she speaks  during the G20 meeting taking place in Buenos Aires, on July 21.
The International Monetary Fund warned world economic leaders...
Germany Lifts Turkey Sanctions
Germany has lifted economic sanctions on Turkey and relaxed...
Farnborough Airshow Announces $192b in Orders
England’s Farnborough airshow this week saw deals worth $192...
Australia  Faces Massive Economic Crash
Australia is facing an economic shock akin the global...
IFC to Inject $2 Billion in Egypt’s Private Sector
International Finance Corporation, a member of the World Bank...
According to a survey, 75.3% are facing difficulties in running their businesses this year.
South Korea’s major business lobby said Sunday it will file an...

Trending

Googleplus