Optimal currency shares in international reserves

The ECB Working Paper "Optimal currency shares in international reserves: the impact of the euro and the prospects for the dollar" says that foreign exchange reserve accumulation has risen dramatically in recent years.

"The introduction of the euro, greater liquidity in other major currencies, and the rising current account deficits and external debt of the United States have increased the pressure on central banks to diversify away from the US dollar. A major portfolio shift would significantly

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