US dollar accounts for 62% of global Central Bank Reserves

US dollar accounts for 62% of global central bank reserves

The US Dollar is the major reserve currency of the central banks all around the world. While the Euro is stronger than the dollar, still the countries are holding the US Dollars as their reserve currencies.

After the recession in USA, the US Government has increased its money supply from $ 800 Billion to above $ 2 Trillion ($ 2000 Billion). And that’s why the purchasing power of the US Dollar is diluting by several folds.

And this is the reason now there is a concern among economists from all around the world that weather they should reduce their dollar reserve or not?

This is because now dollar is something which is loosing its value markedly because of the money printing activity of the US Government.

I personally feel that the central banks should reduce their US Dollar reserve and increase the gold allocation of their portfolios to maintain the purchasing power of their wealth.