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Exporters cut dollar deposits
Oil exporting countries deposited fewer dollars in the second quarter in the international banking system and increased euro and yen-denominated deposits, according to a report by the Bank for International Settlements.
- Reuters
- Published: 00:00 December 12, 2006
London: Oil exporting countries deposited fewer dollars in the second quarter in the international banking system and increased euro and yen-denominated deposits, according to a report by the Bank for International Settlements.
The BIS data, often seen as a clue to how oil-rich governments invest windfall revenues, showed the share of dollar liabilities to oil exporting countries fell to 65 per cent from 67 per cent in the first three months of 2006.
The euro's share rose by 2 percentage points to 22 per cent.
In the three months to June, residents of Opec member states placed a total $8 billion in international banks reporting to the Basel-based BIS, a forum for central banks around the world.
Largest net outflow
Within this, deposits of US dollars fell by $5.3 billion in the second quarter, while euro and yen denominated deposits rose by $2.8 billion and $3.8 billion respectively.
Russia, the world's second largest oil exporter, placed $16 billion in the international banking system in the second quarter. Its dollar deposits increased by $5 billion, but the bulk of the $16 billion came from euro-denominated funds.
Total liabilities of BIS reporting banks to Russian residents stand at $632 billion.
"Russia experienced the largest net outflow of funds among all emerging market countries, thanks to the strong growth in Russian deposits at reporting banks, particularly in the UK," the BIS said.
US dollar deposits of residents of Iran in developed European countries fell by $4 billion. Saudi Arabia - the world's biggest oil exporter - reduced its dollar deposits in UK banks by $3 billion, while increasing those in yen by a similar amount.
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