World Bank warns poor countries on dollar reserves

The World Bank warned the central banks of developing nations on Wednesday 6 April that a sudden decline in the dollar could prove costly for them if global interest rates rise.

In its 2005 Global Development Finance Report, the bank identified the "gravest risk" for emerging markets as a deep and disorderly dollar decline.

"In these countries the question of the potential cost of reserve holdings can reasonably be posed," the bank said.

The result, it said, could be "a costly restructuring of