The AFR would have you think that the Aussie dollar is on the verge of collapse owing to jittery central banks:
And as China liquidates its almost $US4 trillion ($5.7 trillion) stockpile of reserves, the Australian dollar might come under more pressure than previously expected.
The IMF’s quarterly update on foreign exchange reserves included a breakdown of China’s “representative portfolio”, which Royal Bank of Canada’s analysts used to surmise that about 3.5 per cent of its $US3.7 billion of foreign exchange reserves were held in Australian dollars. That number is larger than holdings of other central banks, which reported allocations below 2 per cent, the previous estimate for China’s allocation.
