World Bank Annual Report on Global Finance ReleasedThe world bank has released an annual report on global finance. From a forex market point-of-view, there are some interesting comments from the World Bank regarding developing countries central bank currency reserves in U.S. dollars. According to the World Bank, the financial crises of the late 1990s made many of the developing countries central banks to increase their foreign currency levels, especially in the U.S. dollar, to deter attacks from currency speculators against their currency. However, now, according to the World Bank, those levels are far too great in proportion to where they should be. In fact, the World Bank figures show that at the end of 2004, developing nations had reserves totaling an $1.6 trillion, which accounts for 53% of the global total. Of the 132 developing nations tracked by the World Bank, 101 reported an increase in reserves according to the report. |