Dollar Share of Emerging-Market Reserves Drops, Goldman Says |
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December 31, 2009
Emerging-market central banks cut the dollar’s share of their foreign reserves for a second straight quarter, supporting the view that the greenback is becoming less attractive, according to Goldman Sachs Group Inc.
Emerging-market central banks cut the dollar’s share of their foreign reserves for a second straight quarter, supporting the view that the greenback is becoming less attractive, according to Goldman Sachs Group Inc.
The dollar’s share stayed below 60 percent in the three- month period ended Sept. 30, a level that had not been broken for five years until the second quarter, according to Goldman Sachs’s analysis of an International Monetary Fund report released yesterday.
“It is getting more and more difficult to dismiss the ongoing decline in the share of dollar reserves as temporary noise,” the London-based Goldman Sachs economist Thomas Stolper wrote in a research note to clients today. “It is now increasingly likely that emerging-market central banks have indeed decided to reduce the share of dollar reserves.”
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