Markets Insider By Phil RosenÂ
- Israel’s central bank added yuan to its reserve holdings for the first time ever.
- Previously, the bank only held US dollars, euros, and the British pound.
- According to the IMF, the dollar’s share of the total global currency reserves has fallen to its lowest point in over two decades.
Israel’s central bank will add Chinese yuan while slashing its dollar and euro holdings in a move to diversify its reserve allocations and lengthen its investment horizon, Bloomberg reported.
“We need to look at the need to earn a return on the reserves that will cover the costs of the liability,” Deputy Governor of the Bank of Israel, Andrew Abir, said in an interview.
In addition to the yuan, the bank will also add the Canadian and Australian dollars, signaling a shift in the bank’s “whole investment guidelines and philosophy,” Abir said. Previously, the bank only held US dollars, euros, and the British pound.
Israel’s reserves stockpile will surpass $200 billion for the first time.
