The rumors have been confirmed, and the Australian dollar and the Canadian dollar are being considered reserve currencies. The International Monetary Fund has asked that countries include their Aussie and loonie holdings in reserve statistics starting next year.
The move by the IMF is seen, by some, as one that has been long in coming. Practically speaking, central banks have already been expanding their holdings to include the Aussie and the loonie, since they are the leading commodity currencies in the world. Additionally, they are backed by economies that have remained relatively stable throughout the recent upheaval.
Australian dollar and Canadian dollar now join the other “official” reserve currencies: US dollar, euro, Japanese yen, UK pound, and Swiss franc. The US dollar has long been the de facto world reserve currency for some time, but other currencies have been gaining popularity. The move to include the Aussie and the loonie might also open the way for a system based on a basket of currencies — if global leaders ever decide that the need for a global currency rate is ever needed.
At 15:38 GMT USD/CAD is down to 82.3290 from the open at 82.4805. AUD/USD is higher, up to 1.0441 from the open at 1.0390. AUD/CAD is up to 1.0375 from the open at 1.0356.
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