-
Emerging Markets Dump Euro Reserves
Mr. Frankel said that the size of the eurozone still made euros competitive as a reserve currency and returns were no lower than in other big advanced economies. But the eurozone bond markets are no longer as deep or liquid because of concerns about the creditworthiness of Spain and Italy. A reserve asset must hold its value and be easy to sell during a crisis. "The degree of integration across European financial markets has taken a step back in recent years," said Mr. Frankel. "That is the dimension on which the euro has lost ground in international currency status." The euro may regain its allure if Europe ... (full story)