• Send Us A Tip
  • Calling all Tech Writers
  • Advertise
TechStory
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
SUBSCRIBE
TechStory
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
TechStory
No Result
View All Result
Home News

Reserves held in USD by Central Banks falls over 50%

Reshab Agarwal by Reshab Agarwal
April 22, 2023
in News, Trending
0
Icertis Acquires Rs 100 Crore Funding In Its Series B Round
215
SHARES
3.6k
VIEWS
TwitterWhatsappLinkedin

According to a note from Eurizon SLJ Asset Management, the percentage of reserves held in USD by Central Banks falls over 50% of the total global reserves. The note also mentioned that the recent sanctions put by the United States Government against the Bank Of Russia had eroded trust in the dollar as a reserve currency. However, there are many more factors that led to this decline, including the COVID-19 pandemic and the growing popularity of digital currencies such as Bitcoin.

You might also like

Mark Cuban Selling Majority Stake in Mavericks to Miriam Adelson 

Apple Breaks Ties with Goldman Sachs: Apple Card Embarks on a New Journey

The Oracle of Pasadena and Warren Buffett’s Right-Hand Man – Unveiling the Secrets of Value Investing

Central Bank Dollars Reserves hit 47 percent as trust in the currency declines

The US dollar has long been the world’s primary reserve currency, with most countries holding a significant amount of US dollars in their central bank reserves. However, this has changed rapidly in recent years, as more and more countries have been diversifying their reserves by investing in currencies like the euro, Japanese Yen, and Chinese Yuan.

On April 17, 2023, a note issued by Eurizon SLJ Asset Management revealed that the percentage of the reserves that Central banks held in US dollars fell over 50 percent. Analysis from the firm explains that this decline in just a single year is really exceptional and marks the acceleration of the predicted erosion rate of the US dollar.

The decline in the US dollar’s dominance as a reserve currency is a significant development, as it has many major implications for the global economy. One potential consequence is that the US dollar’s value could decline significantly as demand for the currency worldwide decreases. This could lead to inflation and other problems for the US economy.

However, it is good news for the crypto industry as a decline in the value of the US dollar could lead to a rise in the value of its alternative currencies, such as BTC, because investors would look for alternatives to store their value.

Causes for the decline in US Dollar reserves worldwide

As you know, the percentage of reserves held in USD by Central Banks falls over 50 percent of the global total of reserver One of the main reasons for the decline in the US dollar’s dominance as a reserved currency is the COVID-19 pandemic which has led to significant economic disruption worldwide, with many countries experiencing significant declines in economic growth.

Another reason for the decline in the US dollar’s dominance, as reported by Eurison SLJ Asset Management firm, has to do with the wide package of sanctions that the US government has applied to Russia due to its involvement in current Russia- Ukraine conflict, freezing its gold and foreign current assets abroad. It has also put several key companies on the designated entity list of the OFAC.

The dollar has become “TOXIC”

This de-dollarisation trend fueled by the so-called weaponization of sanctions by the US government has global blocs like BRICs and ASEAN (Association of Southeast Asian Nations) looking for alternatives to safely conduct trade among themselves.

BRICS is looking for an initiative to create a common currency that will be discussed at the next summit in South Africa. In the same way, the ASEAN countries have called for reducing reliance on the US dollar and the usage of national currencies for international settlement, fearing the applications of secondary sanctions.


What are your thoughts about the drop in the global percentage of reserves held in US dollars? How do you think it will impact the US economy? Let us know in the comments below. And if you found our content informative, share it with your family and friends.

Also Read: European Parliament Passes MiCA; new framework for crypto.

Tags: #Central_banks#Reserves#USD
Tweet54SendShare15
Reshab Agarwal

Reshab Agarwal

Reshab is a tech-enthusiast who likes to write about all things crypto. He is a Bitcoin bull and believes in a decentralized future of finance. Follow him on Twitter for more!

Recommended For You

Mark Cuban Selling Majority Stake in Mavericks to Miriam Adelson 

by Anochie Esther
November 30, 2023
0
Miriam Adelson

Mark Cuban, the outspoken and iconic owner of the Dallas Mavericks, is making headlines with the sale of a majority stake in the franchise to Miriam Adelson and...

Read more

Apple Breaks Ties with Goldman Sachs: Apple Card Embarks on a New Journey

by Rounak Majumdar
November 30, 2023
0
Apple Breaks Ties with Goldman Sachs: Apple Card Embarks on a New Journey

Unexpectedly, Apple has announced that it is ending its long-term credit card association with Goldman Sachs. This action, which is anticipated to go into effect in the next...

Read more

The Oracle of Pasadena and Warren Buffett’s Right-Hand Man – Unveiling the Secrets of Value Investing

by Rounak Majumdar
November 30, 2023
0
The Oracle of Pasadena and Warren Buffett's Right-Hand Man - Unveiling the Secrets of Value Investing

The "Oracle of Pasadena," Charlie Munger was a well-known businessman, lawyer, and investor who spent more than 40 years as Berkshire Hathaway's vice chairman and right-hand man to...

Read more
Next Post
Tik Tok allegedly censors crypto influencers

Study shows over 30% of crypto-related TikTok videos are misleading

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Nexcopy USB Duplicator

Make data loading to flash drives a simple process. Nexcopy USB Duplicator Systems.

Related News

How To Get To Bean Valley in Super Mario RPG

How To Get To Bean Valley in Super Mario RPG

November 19, 2023
Cybertruck in a showroom

Tesla Cybertruck Showroom Locations: Where to See the Electric Beast in Person

November 24, 2023
How to get Johnny Silverhand arm in ‘Cyberpunk 2077’

How to get Johnny Silverhand arm in ‘Cyberpunk 2077’

August 28, 2023
How to send a gift message on Instagram

How to send a gift message on Instagram

August 18, 2023
How To Play Naruto x Boruto Ultimate Ninja Storm Connections with Friends

How To Play Naruto x Boruto Ultimate Ninja Storm Connections with Friends

November 19, 2023
COD- Modern Warfare

Burst Assault Rifle becomes a full-auto demon in Modern Warfare 3 loadout

November 14, 2023

Techstory

Tech and Business News from around the world. Follow along for latest in the world of Tech, AI, Crypto, EVs, Business Personalities and more.
reach us at info@techstory.in

Advertise With Us

Reach out at info@techstory.in

BROWSE BY TAG

#Crypto acquisition AI amazon android Apple bitcoin Business China cryptocurrency e-commerce electric vehicles Elon Musk entrepreneurship Ethereum facebook flipkart funding Google India Instagram Investment ios iPhone IPO Market Markets Meta Microsoft News NFT Russia Social Media SpaceX startup startups tech Tech news technology Tesla TikTok trending twitter uber whatsapp

© 2023 Techstory Media Pvt Ltd

No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to

© 2023 Techstory Media Pvt Ltd

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?