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News Link • Dollar Meltdown The

Global Central Banks Join The "Short Dollar" Bandwagon

• Zero Hedge

They are actually acting on their statements." This should come as no surprise to anyone following the Fed's central bank liquidity swaps which have plummeted to post-(and pre-) Lehman lows, as the Fed no longer needs to bail out its counterparts' short dollar positions.

Some highlights from Englander's report:

Q2 09 was the only time that central banks have accumulated more than USD100bn of reserves in a quarter, and the USD’s share of this accumulation has been less than 40%. This is also the only time the EUR has accounted for more than 50% of the accumulation when central banks, in aggregate, have accumulated more than USD80bn. The JPY’s share of the increase in reserves was 12%, by far the highest incremental JPY share since 2005. The drop in aggregate reserves in Q4 08 and Q1 09 was almost all USD, but the recovery has been primarily in non-USD reserves.

How does this manifest itself graphically?


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