Currency diversification continuous (with a caveat)

Reserves Shifting Away from the Dollar?

From RGE Monitor: "Global central banks, which managed over US$8 trillion in reserves at the end of 2009, according to IMF, estimates have been gradually diversifying their portfolios. The dollar share has inched down since 2000. The appreciation of the U.S. dollar and central bank participation in the global flight to safety slightly boosted the dollar share in 2008 to around 65% of the institutions that report their currency composition. IMF data suggest that the dollar share of reserves of countries that report currency composition fell to almost 62% at the end of 2009, underscoring an ongoing trend of gradual diversification away from U.S. dollar assets. The pace of diversification seemed to slow as 2009 wore on, as intervention by central banks to slow the appreciation or volatility of their exchange rates implied significant purchases of dollar assets. Several countries—especially China—do not report the currency composition of their reserves, so the dollar decline may be overstated."