IMF to Consider Classifying the Canadian & Australian Dollar As Reserve Currencies

The International Monetary Fund said today that it is considering classifying Canada’s dollar, nicknamed the loonie for the image of a loon on the C$1 coin, and Australia’s dollar, as reserve currencies. Words: 285

So says Katia Dmitrieva ( in edited excerpts from an article entitled Canadian Dollar Gains as IMF Considers Reserve Status.

 Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), may have edited the article below to some degree for length and clarity – see Editor’s Note at the bottom of the page for details. This paragraph must be included in any article re-posting to avoid copyright infringement.

Dmitrieva goes on to say, in part:

The Canadian and Australian dollars “are to be considered for inclusion” separately in the IMF’s “Currency Composition of Official Foreign-Exchange Reserves” data, the Washington-based lender said. They’ve previously been included in an“other currencies” category in the COFER reports.

Jack Spitz, managing director of foreign exchange at National Bank of Canada in Toronto, said in a phone interview that:

“More and more central banks are adopting a diversified approach, especially with what’s gone on in Europe and the United States. It’s another positive story on holding Canada and commodity currencies”.

In addition, Emanuella Enenajor, an economist at CIBC World Markets in Toronto, said in a phone interview that:

“This…sheds greater light on the extent to which reserve managers are investing in the Canadian dollar and the Aussie dollar. It’s a bullish signal because the IMF would only do this for a currency that is gaining in its clout potentially in reserve portfolios.”

[It is interesting to note too, that] Russia has been adding Canadian dollars to foreign-exchange reserves with Georgiy Mamedov, Russia’s ambassador to Canada, calling it a haven currency…. The country increased its holdings of the Canadian dollar in its international reserves to 1.6 percent from 0.8 percent as of January.

The loonie has climbed 1.4% this year against nine developed-nation counterparts tracked by Bloomberg Correlation -Weighted Indexes. The U.S. dollar has dropped 1.3%, and the yen leads decliners with a 7.3% drop.

*http://www.bloomberg.com/news/2012-11-19/canadian-dollar-extends-gains-on-imf-reserve-status-move.html

Editor’s Note: The above post may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.

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2012-11-21 19:01:15

Source: http://www.munknee.com/2012/11/imf-to-consider-classifying-the-canadian-australian-dollar-as-reserve-currencies/