According to the Globe & Mail, Russia is adding the “Loonie” to its foreign currency reserves (they also followed up with a second story), highlighting a trend towards greater diversity and away from the Greenback.
Russia holds the equivalent of approximately US$400bn in foreign currency reserves. Many countries, including Russia, are now diversifying their foreign currency reserves – away from the Greenback to a basket of other currencies.
The article also notes that Indonesia is planning on issuing bonds in Euro. Issuing bonds that are repayable in a currency that is likely to rise in value will result in greater future obligations of the issuer, and of course issuing bonds in a currency likely to go down in value decreases the amount of repayment obligations in the future. The government of Canada has issued bonds in US dollars with the expectation that the US dollar will be less than the Canadian dollar when it comes time to repay it. That being said, the instability of the bonds’ currency results in unpredictability. I believe most bonds are issued in US dollars, with the remainder predominantly in British Pounds, Japanese Yen and the once Deutsche Mark – now the Euro.
Because the demand for the Canadian dollar is tied to demand for commodities, the Canadian currency is often viewed as a “commodity currency”. Commodities are viewed favourably as a long-term prospect, owing mostly to the growing demand for commodities from the “developing” states of China, Brazil, India, etc.