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 associated with further declines in the euro and potential debt rescheduling in Europe. The document also provides a historical analysis of valuation changes in EUR holdings by the top 8 reserve holders and discusses the potential impact on central banks' reserve management strategies.
documents/EFTA00729216.pdf
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