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Terrible site. But I downloaded the data referenced. My conclusion that central banks are choosing the dollar less as a reserve currency. This is a long term tr
by TradingPlaces 3y ago
Terrible site. But I downloaded the data referenced. My conclusion that central banks are choosing the dollar less as a reserve currency. This is a long term trend of managing risk by spreading it out more. At first that was the euro, but now it’s a much wider range of currencies, including Chinese.
What it means is less demand for USD and subsequently the distortion of its price will lessen. It could also make the budget deficit much more problematic if it goes very far.
- Simulacra 3y agoTHANK YOU! That is much more easier to wrap my head around. Did banks rush into the Euro and it later evened out?
- TradingPlaces 3y agoMy read is that everyone is just looking to spread out risk more. At first this was the Euro, but then the 2014-5 crisis sort of killed that. Now it’s a wider range of currencies including Chinese, Japanese, Canadian and Aussie. The Chinese reserves are all in emerging market countries.