The Central banks of several countries completely got rid of Euro-denominated assets, while others have reduced them to a minimum, according to the newspaper Financial Times (FT), citing data conducted by Central Banking Publications and HSBC Bank survey. Most of the activity on exit from the Euro showed the Central banks of developing countries.
The survey was attended by representatives of the national Bank 80 countries, who are assets with a total value of around €6 trillion. According to the FT, more than two thirds of these, the Central Bank recently reallocated assets in their portfolios and almost the same revised terms of investment.
Reasons for reduction in Euro-denominated assets, the survey participants called the weak Eurozone economy and the ongoing ECB policy of negative interest rates (currently the Deposit rate is minus 0.4%). However, the greatest concern among holders euroactive causes uncertainty about the political stability of the EU as in some countries of the EU in the 2017 elections, which could significantly strengthen the position of eurosceptics.
At the same time start the procedure of withdrawal from the EU the UK has not led to a sharp drop in the popularity of investments in pounds sterling. Over 70% of respondents believed that the popularity of the pound in the long term, Brexit not affected. The survey showed that bankers believe the pound is more secure for investment than the Euro, and many of them believe that Brexit will provide them the opportunity for further portfolio diversification.
The most attractive for investments of the Central Bank the currency remains the U.S. dollar. 80% of respondents said that the election of a President Donald trump on their attitude to the dollar is not affected.
According to the Central Bank of the Russian Federation, 30 June 2016, the proportion of the US dollar in its foreign currency reserves amounted to 48.3 per cent, the Euro — 35,7%, the British pound was 8.8%, canadian dollar by 3.7%, the Japanese yen and 2.4%, the Australian dollar 1.1%, the Chinese yuan by 0.1%.
As of 31 December 2015, the share of Euro in foreign exchange assets of the Central Bank of the Russian Federation amounted to 37%, and the dollar is 47.5%. Thus, for six months, the dollar’s share in the assets of the Central Bank rose slightly and the share of the Euro declined.