The intensification of the crisis has led to concerns about a possible shortage of global safe assets. At the same time, major reserve-currency issuers are losing their AAA-rating. This column considers new evidence on the recent rise of non-traditional currencies such as the Australian and Canadian dollars in global reserve portfolios. Evidence suggests that sovereign risk in advanced economies typically considered as safe is a key determinant of the growing importance of non-traditional reserve currencies. The International Monetary Fund just published data for the first time in its history on the importance of the ... (full story)