Euro Slips Slightly to 25 percent as Reserve Currency

The USD still heads the list of reserve currencies with 62.1 percent of all reserves held in U.S. dollars. Both the USD and EUR had a slight dip but still retain their leading positions.

The single European currency made up 25.0 percent of countries’ holdings of foreign exchange reserves at the end of last year, down slightly from 25.4 percent at the end of 2010.
Countries hold on to foreign currencies — such as the U.S. dollar, the euro and Japan’s yen — to help manage their own currency’s exchange rate, as a buffer against financial crises and to service foreign currency debts and obligations.
The U.S. dollar’s role as the world’s No. 1 reserve currency remained stable, the ECB report found.

via Yahoo Finance

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza