Dollar reserve role secure but set to shrink: BIS

The dollar's share of central bank reserves may fall by as much as 10-15 percentage points in coming years without threatening its role as the world's main reserve currency, a senior official from the Bank of International Settlements said on Saturday. Peter Zoellner, head of the banking department at the central banks' central bank, also told one of the year's biggest gatherings of foreign exchange dealers that the role of China's renminbi would continue to grow. He expected trading and central bank reserves held in the yuan to continue to expand "at a sustained pace" but saw no prospect that the Chinese currency could replace the dollar as the reserve of choice over the next couple of decades. "It could happen that the percentage will go slightly down with the reserve currency from between 65 and 70 maybe to between 50 and 60 percent," he told the ACI Financial Markets Association congress in Berlin.

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