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Working group minutes: Cautious exit from dollars

Central banks are contemplating gold, emerging market assets and equities to diversify

FX correlation

Reserve managers continue to look for ways to reduce their exposure to the dollar but are struggling to find reliable alternatives, Central Banking’s latest interbank working group heard.

Faced with high government debt in the US and increased geopolitical risk more broadly, managers are trying to diversify into a wider range of assets. Overall, though, the movement away from the greenback is slow, as recent data from the International Monetary Fund confirmed.

Participants at the working group

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