Global new foreign reserves diversify US dollar

Barclays Capital speculated that the U.S. dollar, which already accounts for less than 30% of the new reserves, Cao Jinling the dollar's status as an international reserve currency is an indisputable fact, but it is a startling speculation that the ratio fell below 30%.　　The absolute upper hand. Barclays Capital said in a recent report to clients that the U.S. dollar ratio could plummet to less than 30% per cent of central banks ' new reserves in the third quarter of this year, calling it "an unprecedented drop in the dollar's weakness", while longer-term demand for the dollar will weaken.　　The agency expects New World Central bank reserves to be $180 billion trillion in the third quarter, with about $50 billion trillion in dollar assets and about 27.8% per cent. At the end of the second quarter of this year, the dollar assets amounted to $2.68 trillion trillion, accounting for more than 62.8% of the world's $4.27 trillion trillion-denominated currency reserves, according to the International Monetary Fund's official latest figures.　　At the end of the first quarter of this year, the ratio was 65%. The IMF data also showed that, in the total amount of known currency reserves up to the end of the second quarter, the euro increased from 25.9% per cent in the previous quarter to 27.5%, while the GBP ratio rose from 4% to 4.3%, and the yen ratio rose from 2.9% to 3.1%.　　This is not only the lowest level of the dollar's share of global foreign reserves since 1999, and the 2.2% per cent fall is the largest since the third quarter of 2002.　　In fact, since March 1999, the share of US dollar assets has slipped from 71.1% highs and has been relatively stable over the past four years, while euro assets have risen from 18.1% lows in the same period. External Reserve Diversification Pressure "the decline of the dollar as a share of foreign exchange reserves is mainly related to the issue of large U.S. government debt issuance and the early dollar plunge." "In the long run, the dollar's status as an international reserve currency is set to fall," Chen, senior macroeconomic analyst at Joint Securities, said in an interview with CBN yesterday. This will be a very slow, not plummeting process. "In recent years, the diversification of central bank reserves is like the sword of Damocles hanging over the dollar." The continued weakening of the dollar and the continued high financial and trade deficits in the United States have been the main reasons for central banks to diversify their allocation of reserves. From Russia, Ukraine to the Middle East countries, and to many countries in Asia, have published relevant statements.　　The dollar index, which measures the dollar's overall trend, fell 9.5% per cent in the second quarter. "Emerging-market central banks are selling their currencies and buying dollars to ease their currency's excessive appreciation," he said. "At the same time," said Steven Englander, chief dollar strategist at Barclays in New York, "They are also avoiding the Steven Ingland of dollar assets in their reserves, thus dumping dollars, moving to euros or other currencies, and diversifying." "The IMF figures show that the dollar share has slipped from 60.1% in the first quarter to 58.9 in emerging and developing countries ' known currency reserves by the end of the second quarter.%, the euro ratio increased from 30.3% to 31.3% in the same period, while the yen rose from 1.5% to 1.6%.　　And a big drop in space? By the end of November, the dollar index had risen 5.4% and the euro had fallen 5.8% against the dollar.　　From the whole year onwards, the dollar index's biggest decline remains as high as 16%.　　In Barclays Capital, the dollar rally will stop in 2010, as central banks gradually reduce the proportion of dollar assets in their reserves and the Fed's pace of interest rate hikes or slower than market expectations. "We expect the dollar to strengthen in the first six months or the first nine months of next year, mainly because the focus of this period is on market activity recycling and the Fed's expectations of rate hikes," he said.　　"But England believes the dollar will be sold again when the market sees the Fed tightening too fast." "As the relative strength of the United States declines, the long-term trend of the dollar is indeed downward, but the space for a sharp fall in the medium term is very limited." "Chen to CBN reporter," said the main reason for the impact of the medium-term dollar trend is the Fed's interest rate level, and the fiscal and trade deficit, while the fiscal deficit is at its worst, the trade deficit has narrowed, and the market's expectations of rising interest rates have weakened the former dollar. Lianping, chief economist at Bank of Communications, recently pointed out that the U.S. government debt will continue to expand over the foreseeable future, and the annual debt service will be very large. "The United States government will need to send new debt to repay the old debt, if the dollar continues to depreciate, people do not want to hold the dollar, dollar assets must fall sharply, the difficulties will be great." Now some people say that the United States Government will certainly defend the dollar in the future, I think this argument is not unreasonable.　　"he said. As a result, lianping that the future dollar will continue to depreciate for a long time or to play a big question mark.