Central banks secure Aussie dollar in reserves
(19 September 2012 – Australia) Central banks throughout the world have included Australian dollar assets in their foreign exchange reserves, highlighting the appeal of the Aussie dollar among overseas investors.
In a sign this interest goes beyond major trading partners, up to 23 central banks hold the dollar range from the National Bank of Kazakhstan to Sweden's Sveriges Riksbank, an internal Reserve Bank of Australia (RBA) document shows.
The document, released on Monday under Freedom of Information laws, said 15 central banks held Aussie dollar assets and a further eight could possibly be holding the currency.
Some of the larger institutions holding the dollar include Germany's Bundesbank and the central banks of Switzerland, Hong Kong and Russia.
Foreigners held 77 percent of Australia's A$245 billion government debt in the June quarter, just below a record 79 percent in March.
In a separate document, written in April and released on Monday, Chris Potter from the RBA's international department wrote: ''The apparent preference shift and resulting portfolio shift of foreign investors towards Australian dollar government securities has increased Australian dollar demand.''
The document, released on Monday under Freedom of Information laws, said 15 central banks held Aussie dollar assets and a further eight could possibly be holding the currency.
Some of the larger institutions holding the dollar include Germany's Bundesbank and the central banks of Switzerland, Hong Kong and Russia.
Foreigners held 77 percent of Australia's A$245 billion government debt in the June quarter, just below a record 79 percent in March.
In a separate document, written in April and released on Monday, Chris Potter from the RBA's international department wrote: ''The apparent preference shift and resulting portfolio shift of foreign investors towards Australian dollar government securities has increased Australian dollar demand.''
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