Excerpt from: GFT Analysts in the News
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| May 01, 2008 | | Euro becoming more popular as a foreign exchange reserve currency | One of the developments that has been accelerated because of the US subprime mortgage market meltdown has been the adoption of the euro as a foreign exchange reserve currency.
The strength of the euro in forex trading has led many countries to increase their reserves of the euro, while paring back the US dollar. However, the euro is unlikely to completely supplant the US dollar as a reserve currency, reports Bloomberg:
``Whenever there's been more than one liquid financial
market, there's been more than one reserve currency,''
Eichengreen said yesterday in a panel discussion at the Milken
Institute Global Conference in Los Angeles. ``Looking out 10
years, I expect the dollar and the euro to share that status.'' | Topic Tags: currency trading, euro forex trading, foreign exchange, foreign exchange currency, forex trading, reserve currency, subprime mortgage, US dollar | |
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