4/1/07

Is the world moving away from dollars?

(Bloomberg) -- The dollar's share of global foreign-exchange reserves fell to the lowest level in at least eight years as central banks accelerated their purchases of euros, the International Monetary Fund said.

Dollars accounted for 64.7 percent of reserves last quarter, down from 65.8 percent in the prior three months, the IMF said today in Washington. The share of euros climbed to 25.8 percent from 25.1 percent, reaching its highest proportion since the single currency was introduced in 1999.

My Point. This shift has been accompanied by a steady appreciation of the Euro. You can hedge your portfolio by buying FXE, the ETF for the Euro.

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George Dagnino, PhD
Editor, The Peter Dag Portfolio on https://www.peterdag.com
Since 1977

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