Central Banks lead a shift away from the dollar - Connie Madon

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Central Banks lead a shift away from the dollar
Nov 05, 2009 09:30 PM UTC

Connie Madon

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Filed under: India, China, Brazil, Russia, Market matters, Money and Finance Today, Federal Reserve

The US dollar is down 20% since 2002 on a trade weighted basis. Other world economies like China are dynamic, with growth rates of 8 and 9%. With that kind of clout, countries like China, India and Brazil, can choose where to place their reserves.

Slowly, developing countries are shifting their reserves away from the dollar into the euro and yen. Neil Mellor, strategist at Bank of New York Mellon Corp (NYSE: BK), which has some $20 trillion dollars in assets under custody said: "I don't think there will be an imminent move, but it is quite clear there's a plan to shift reserves to a more balanced portfolio."

Barclays Capital Research reported that central banks placed 63% of new cash in non US currencies between April and July.

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Central Banks lead a shift away from the dollar originally appeared on BloggingStocks on Thu, 05 Nov 2009 16:30:00 EST. Please see our terms for use of feeds.

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