Australia's RBA First Major Bank to Ditch US Dollar Reserves Amid Trump Uncertainty

The Reserve Bank of Australia has become the first major central bank to confirm it has reduced its US dollar holdings. This move is part of a wider trend by policymakers to diversify their assets away from the United States due to unpredictable White House policies.

Data from the International Monetary Fund and think tank surveys show that for the first time this year, central banks are planning to trim their exposure to the greenback rather than build up reserves over the next decade. This is done to hedge against political risk and wild swings in the currency and bonds.