Euro Drop a Turning Point for Central Bank Reserves
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Central banks and reserve managers are breaking from past practice by showing little appetite to add euros as the currency tumbles.
The total amount of reserves held in euros fell 8.1 percent in the third quarter, more than the currency’s 7.8 percent decline in that period against the dollar, according to the most recent figures from the International Monetary Fund. The last two times the euro depreciated 7 percent or more in a quarter -- in 2011 and 2010 -- holdings declined far less.