Now look what happened today. In the greater scheme of things, the BRIC (Brazil, Russia, India, China) nations have revolted against the G7 cartel. Instead of pursuing business the old fashioned way, they have opted instead to channel more fund flows into alternate "currency" SDR currency w/the IMF (see March and February posts).
MOSCOW (Dow Jones)--Russia's central bank said Wednesday it plans to reduce the proportion of foreign exchange reserves it invests in U.S. Treasury bonds as Moscow continues to bemoan the dollar's status as a global reserve currency.
"We plan to cut the share of U.S. Treasuries since the window of opportunity to work with other instruments is opening," Deputy central bank Chairman Alexei Ulyukayev told Russia's State Duma, or lower house of parliament, according to a report by the Interfax news agency.
Russia holds around $400 billion in gold and foreign exchange reserves, the world's third-biggest stash behind China and Japan.
The central banker's remarks pressured the dollar in Wednesday currency markets. Shortly after publication, the euro rose to $1.4140 from around $1.4100, and the British pound climbed to the day's high of $1.6473.
Ulyukayev said reserves are just over 30%-invested in U.S. Treasuries at present. He didn't specify by how much that figure would fall.
Ulyukayev said Russia would shift some into bonds issued by the International Monetary Fund and deposits at commercial banks.