Vast reserves of a declining currency are dangerous for Asian central banks

By Harold James
The Australian, Sydney
Saturday, January 1, 2005

The People's Bank of China and the Bank of Japan,
as well as other central banks in Asia, are in trouble.
They have accumulated vast foreign exchange
reserves, estimated at more than $US2 trillion
(AU$2.6 trillion), but almost all of these reserves are
in US dollars -- which are rapidly losing their value.