The U.S. Federal Reserve’s policy of quantitative easing — essentially printing money — and a call by France to look at ways to wean the world off the dollar as the sole reserve money have put the U.S. currency in the spotlight.
“I’m more optimistic about the euro gaining strength as a potential reserve currency,” Bank of Israel Governor Stanley Fischer said during a panel discussion at the annual World Economic Forum in Davos, Switzerland.
“We ourselves are diversifying into currencies which we would never have put in the reserves before, including the Australian dollar and so forth,” he added. “I think people will diversify their reserves.” More.