Building a world of
resilient communities.

MAIN LIST

 

Asian banks offload their greenbacks

The US dollar's status as the world's main reserve currency is under threat as Asian banks back away from the superpower's ballooning twin deficits.

Over the past three years, central banks in the region have been scaling back their holdings of US dollars amid jitters about the United States' ever-expanding current account and budget deficits, which collectively soaked up at least $US1000 billion ($A1265 billion) of foreign currency last year.

A report by the Bank for International Settlements has estimated that the share of deposits held in US currency by Asian banks dropped to 67 per cent in the September quarter of 2004, from about 81 per cent of total deposits three years earlier.

The figures suggest that a dramatic but not widely publicised regional shift away from the US dollar is under way.

They follow a warning from Japanese Prime Minister Junichiro Koizumi that the Japanese central bank should consider diversifying out of US dollars. Korea expressed similar sentiments last month.

The report said the shift had been most pronounced in India, where the ratio of reported US-dollar holdings has plummeted from around 68 per cent to 43 per cent over the three years to September 2004. China has also been scaling back its holdings, taking its share from 83 per cent to 68 per cent.

What do you think? Leave a comment below.

Sign up for regular Resilience bulletins direct to your email.

Take action!  

Find out more about Community Resilience. See our COMMUNITIES page
Start your own projects. See our RESOURCES page.
Help build resilience. DONATE NOW.

 

This is a community site and the discussion is moderated. The rules in brief: no personal abuse and no climate denial. Complete Guidelines.


"Make, be, dance, pedal, shape the future".

I suppose that’s what my creative practice is: I do something with the …

Getting Beyond the Green Wall: Mary Oliver, Kay Ryan and William Blake

One can read a landscape, a garden, a tree, a bird, or a poem.

The Systems View of Life – A Unifying Vision  

Interview with Fritjof Capra author of The Tao of Physics (1975) and …

'An Ecomodernist Manifesto': Truth and confusion in the same breath

What the ecomodernist narrative misses is that we are dealing with complex …

Resilience Roundup - May 1

A roundup of news, views and ideas from the main stream press and the …

After Disaster, Tactical Urbanism Builds Resilience

What has transpired in Christchurch over the past four years is nothing …

Little Town on the Prairie Steps It Up

Albert Lea, Minnesota shows how walking and other healthy habits can …