Investors are Searching out Safe Money?

It was reported that global reserve managers are leading to identify the stable currencies available in the market that could stand as a currency portfolio.  Analysts explained that the reserve shares of other currencies registered at 3.7 percent in the first quarter of this year, which indicate an uptrend of about 1.5 percent as this decade begins. According to Nomura's data, the central banks that reported in the first quarter of this year were able to obtain a record high of $24.5 billion of their own other currency portfolios.

The identified safe money are the currencies of Canada, Norway, Australia, New Zealand and Sweden. The increasing inflows of these currencies are expected to continue while central banks are notably reaffirming their allocations that can possibly boost these currencies in the years come.

The head of G10 forex strategy at Nomura based in New York, Jens Nordvig explained that it is of high expectations that the mass of these money are potentially coming into the stream and these currencies are displaying impact even if it was observed to have a relatively moderate value in central bank portfolios. The demands helped to carry out the impact of these currencies from the troubled flow of the  financial market.

It is most significant to note that among these safe money, the Canadian currency seemed to have indicated its own resilient character in the recent months even if commodity prices and stocks have experienced a wordlwide rout in economic activity. David Rosenberg, chief economist and strategist at Gluskin Sheff in Toronto, said that Canada was basically re-rated to come out of the credit crisis to become a bastion of stability in an widely unstable world economy. Thus, he said, it is safe to own Canadian dollars at this time as an alternate currency for dollars, yen or euro until the financial storm subsides.