Central bankers shifting funds from US to eurozone: study
01-24-2005, 18h53
Jung Yeon-Je -
(AFP/File) LONDON (AFP) - Central banks have shifted reserves towards the eurozone, according to a study published, in a move that could make it harder for President George W. Bush to finance the record US current account deficit.
"While central banks will continue to some extent to finance the American current account deficit, the United States cannot rely on this source of finance to the same extent as in the past," said the study by Central Banking Publications that surveyed 65 unidentified central bankers.
According to the survey, more than two-thirds of those questioned said they had increased euro-denominated reserves since November 2002.
"Diversification from dollar-denominated to euro-denominated assets appears to be taking place more rapidly that had been anticipated two years ago, although this result may to some extent reflect revaluation changes," it said.
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