Oct 29, 2009

"Over the last three months, banks put 63 percent of their new cash into euros and yen -- not the greenbacks -- a nearly complete reversal of the dollar's onetime dominance for reserves, according to Barclays Capital. The dollar's share of new cash in the central banks was down to 37 percent -- compared with two-thirds a decade ago.

"Currently, dollars account for about 62 percent of the currency reserve at central banks -- the lowest on record, said the International Monetary Fund.

"Bernanke could go down in economic history as the man who killed the greenback on the operating table."

http://www.nypost.com/p/news/business/dollar_loses_reserve_status_to_yen_hFyfwvpBW1YYLykSJwTTEL

Comment: The value of the dollar has a lot to do with supply and demand. When banks demand fewer dollars in their reserves, the value of dollar goes down. This is what the article above is about. Banks are getting rid of dollars and buying more yen and euros. That is why the value of the dollar is going down.