Silk Road Briefing — Israel Adds Chinese RMB Yuan To Its Central Bank Holdings, Reduces US Dollar and Euro Assets

The Deputy Governor of the Bank of Israel has announced it will reduce its US dollar holdings and add the Chinese RMB Yuan to its basket of foreign currency reserves. The bank has previously only held US dollars, Euros and British Pounds.

Andrew Abir stated that “We need to look at the need to earn a return on the reserves that will cover the costs of the liability”

The bank is diversifying its risk and also adding Canadian and Australian dollars, while reducing its US dollar and Euros reserves.

The Central Bank has foreign currency reserves in excess of US$200 billion, and is to allow an initial 2% of Chinese currency of its total holdings, together with 3.5% each for the Canadian and Australian dollars, for a combined total of 9% reduction in US dollar and Euros, meaning the Euro’s share will fall from 30% to 20%, and the US dollar to 61% from 66.5%. According to the International Monetary Fund, the US dollar’s share of total global currency reserves has fallen to its lowest point in over two decades....

The question is now one of potential acceleration as Washington’s use of the dollar as a weapon has not gone unnoticed among other major trade economies.

Silk Road Briefing
Israel Adds Chinese RMB Yuan To Its Central Bank Holdings, Reduces US Dollar and Euro Assets

https://www.silkroadbriefing.com/news/2022/04/21/israel-adds-chinese-rmb-yuan-to-its-central-bank-holdings-reduces-us-dollar-and-euro-assets/