Riksbank Slashes Dollar Reserves for Euros
The Swedish Central Bank has slashed its holdings of US dollar and Japanese yen reserves, in favor of mostly European currencies.
The move is viewed as symptomatic of a wider trend. During the past month, the Riksbank increased its euro weighting to 50 percent from 37, while cutting its dollar allocation to 20 percent from 37 percent. The British pound holding was trimmed by one point to 10 percent, while the yen was cut to zero from eight percent.
Holdings in the Norwegian krona and Australian dollar also increased.
The bank says that the reweighting was based solely on the currencies’ fluctuations over a longer period, and the change should not be seen as an opinion about the future performance of those currencies.