The document discusses the valuation losses central banks have sustained due to the depreciating euro, amounting to USD300 billion year-to-date. It highlights the potential de-rating of the euro by central banks and the risks of further declines in the euro. The document also covers the impact on central banks' reserve management strategies and the potential losses on European bond holdings, particularly in PIIGS countries. It includes a detailed analysis of central bank reserves, valuation changes, and the expanding universe of EUR sellers.
documents/EFTA00612065.pdf
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