Forex diversification talk buoys Euro

As the EU economies gather momentum, the belief that the European Central Bank will tighten monetary policy to head off inflation is gaining widespread acceptance. And with it, talk of forex reserve diversification is spreading. Several OPEC countries have already announced they will begin to invest oil profits in Euro-denominated securities. Further, in a display of European solidarity, Sweden will adjust the composition of its reserves so that European assets represent a majority. Finally, Russia will soon begin rotating a portion of its $61 Billion oil fund into European bonds. AME Info reports:

With the breakdown of the EU Constitution well behind us, the market has feels that reserve diversification is a theme that is here to stay.

Read More: More Central Banks Talk of Diversifying to Euro