Sunday, April 12, 2015

Euro accounts for just 22% of global reserves,6% down from pre crisis level

Central banks cut their euro holdings by the most on record last year to help mitigate losses ahead of the ECB's QE. The euro  now accounts for just 22% of global reserves, down from 28% before the EU's debt crisis five years ago, according to the IMF. "As a reserve currency, the euro is falling apart". The numbers may be music to Mario Draghi's ears - a cheaper currency is theoretically a more competitive one - but Mizuho suggests the euro's slipping popularity suggests a more lasting loss of confidence in the EU economy.