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Central banks eye asset as well as FX shift
By Jamie McGeever
LONDON (Reuters) - Central banks around the world are looking to invest more of their $4.75 trillion foreign exchange reserves in equities at the expense of bonds, but the implications for currencies are far from clear....
Reserves held by the People's Bank of China have topped the staggering $1 trillion level. PBOC Governor Zhou Xiaochuan has said the bank is looking at diversifying that stash across currencies and asset classes.
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itulip threads are full of discussions about what foreign owners of u.s. dollars, especially cb's, might do with all that u.s. denominated money. the answer has always come back to "buy something of value": commodities, real estate, companies. the article linked above is the first mainstream source i've come across to discuss foreign cb's buying equities. we could have a falling dollar and a rising stock market. come to think of it, we have had a falling dollar and a rising stock market.
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Central banks eye asset as well as FX shift
By Jamie McGeever
LONDON (Reuters) - Central banks around the world are looking to invest more of their $4.75 trillion foreign exchange reserves in equities at the expense of bonds, but the implications for currencies are far from clear....
Reserves held by the People's Bank of China have topped the staggering $1 trillion level. PBOC Governor Zhou Xiaochuan has said the bank is looking at diversifying that stash across currencies and asset classes.
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itulip threads are full of discussions about what foreign owners of u.s. dollars, especially cb's, might do with all that u.s. denominated money. the answer has always come back to "buy something of value": commodities, real estate, companies. the article linked above is the first mainstream source i've come across to discuss foreign cb's buying equities. we could have a falling dollar and a rising stock market. come to think of it, we have had a falling dollar and a rising stock market.
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