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 â€” such as the U.S. dollar, the euro and Japan’s yen â€” 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
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