State Street on the dollar

John Nugee of State Street Global Advisors, formerly of the Bank of England, has today released an analysis of the dollar problem. The paper argues that the main effect of the dollar weakness on central banks' willingness to hold dollars may be felt not in the current cycle, but in the next cycle.

Right now the big Asian central banks are locked into their dollar holdings. Any rapid move to diversify out of the dollar would further reduce the value of their reserve portfolios, but the shocking

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Geoeconomic reserve management

The world order is evolving. Whether, and how, the international economy remains integrated or shifts into spheres of influence has consequences for central bank policy and reserve management.

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