Comments on: Record reserve growth, record dollar reserve growth and no evidence of diversification among the countries that matter

By: Brad Setser: Follow the Money » Blog Archive » Can the debate over trade – or globalization – be separated from the debate over exchange rates?

Thu, 12 Jun 2008 15:47:27 +0000

[...] estimates for the sale of US financial assets to emerging market governments are based on my work estimating dollar reserve growth rather than the US data. The US data — especially the US data prior to the forthcoming [...]

By: bsetser

bsetser — Mon, 31 Mar 2008 18:08:26 +0000

Rurik — to the best of my knowledge, yes.

mheck82 — i think too many central banks are still impeding adjustment, with the net result that adjustment is unbalanced. I would like to see both the gulf and china appreciating in nominal terms against a trade weighted basket. that said, i would not want to see central banks go cold turkey. not right now.

i would tho like to see central banks buy more agencies and fewer treasuries. i think gavekal is right on this point.

By: mheck82

mheck82 — Mon, 31 Mar 2008 16:40:03 +0000

“that excessive central bank demand for dollars is impeding global adjustment than evidence that the dollar is about to lose its status as the world’s leading reserve currency.”

I think that was true in the past, but now I would put it, that CBs are not impeding adjustment, but smooth it, so that the adjustment does not create too much havoc, or do you really want to stop them buying more dollars just tomorrow?

By: Rurik

Rurik — Mon, 31 Mar 2008 15:29:16 +0000

Brad:Does Russia still keep 45% of its reserve in dollar?

By: bsetser

bsetser — Mon, 31 Mar 2008 15:11:00 +0000

On topic comments please. There is plenty to chew over in this post.