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US Dollar Status as Dominant “Global Reserve Currency” amid Reckless QE & Government Deficits
The global share of US-dollar-denominated exchange reserves – these are financial assets such as US Treasury securities, US corporate bonds, US mortgage-backed securities, etc., held by foreign central banks – declined to 59.2% in the second quarter, according to the IMF’s Composition of Official Foreign Exchange Reserves (COFER) data released today. In Q4 last year, the dollar’s share hit a 25-year low of 58.9%. And by the dreary looks of it, the dollar continues on its long, slow, uneven downward trajectory (2014 is the beginning of the quarterly data, prior data is annual): chart The Fed is a reckless ... (full story)