ECB says eurozone banks have reduced USD holdings

Euro zone banks appear to have reduced their holdings of US dollar-denominated assets in the first half of 2004, the European Central Bank said in a report on EU banking sector stability.

"In 2004 there were indications that banks' usd-denominated assets remained broadly constant or decreased. In particular, in the case of euro area countries, holdings of usd-denominated fixed-income assets appear to have decreased in the first half of 2004," the report said.

"Overall, this evidence suggests th