6/24/2014
The FT/IMF recently reported that more than 62% of foreign central banks' assets are denominated in U.S.$, of which a significant portion is in U.S. Treasurys. As the Federal Reserve unwinds its quantitative-easing program, foreign central banks will
48.55%
Maintain their U.S. Treasury holdings
20.61%
Sell U.S.$-denominated assets and reallocate that money globally
17.04%
Increase their U.S. Treasury holdings
10.56%
Sell U.S. Treasurys but buy other U.S.$-denominated assets (e.g., U.S. stocks)
3.24%
Sell U.S.$-denominated assets and repatriate that money