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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: philv who wrote (19435)	10/23/2003 4:35:20 PM
From: sea_urchin	Read Replies (1) \| Respond to of 81957

Phil, I made a long response to your post and when I posted it, SI blew it away into cyberspace. I was so annoyed that I switched off the computer. I suppose it must have been rubbish anyway.

To: philv who wrote (19435)	10/23/2003 5:43:19 PM
From: sea_urchin	Read Replies (1) \| Respond to of 81957

Phil > there must be a mechanism to honestly price the US dollar against other world currencies That's what the Russians also think. russiajournal.com >>>Russia plans to cut the share of US dollars in its reserves and increase the share of euros, Senior Deputy Finance Minister Alexey Ulyukayev said on Tuesday. According to him, the necessity of this measure is connected with the important role of the European market for the Russian economy and with the weakening of the American currency on the international market. The percentage of dollars in the currency reserves will be reduced by 3-5 percent, and the share of euro reserves will be increased by the same amount, Mr. Ulyukayev told the Bloomberg agency. Four years ago, dollar reserves made up 90-95 percent of Russia’s foreign currency reserves. At that time, the Central Bank’s leadership did not plan to increase it significantly. Two years ago, the former Chairman of the Central Bank Viktor Gerashchenko said that only 5 percent of the country’s reserves were in euros. According to him, there was no need to increase this share, as the bulk of foreign trade payments was made in dollars. But the Central Bank’s new team has broken this mold. The bank’s Chairman Sergey Ignatyev has recently reported that 70 percent of the reserves were in dollars and 25 percent in euros. The Russian gold and foreign currency reserves were $63.5bn as of October 10, including $58.3bn in foreign currency reserves. We can only assume that the Finance Ministry fears that the dollar will continue falling on the international exchange market. Since the start of the year, the American currency has weakened against the euro by about 10 percent, and, according to some forecasts, this tendency will continue. However, it is not ruled out that the Finance Ministry’s statements are part of its anti-dollar game. The positions of the dollar and the euro are determined by the demand for this or that currency in international payments and, accordingly, the demand from national central banks.<<<