So much for the AUD falling...*******Bundesbank considers...

So much for the AUD falling...

*******

Bundesbank considers Australian dollar assets
Published 4:22 AM, 14 Jun 2012 Last update 4:22 AM, 14 Jun 2012

In a move that would prove a dramatic step in Australia's emergence as a safe haven for investors rattled by the European debt crisis, Germany's central bank, Bundesbank, is reportedly considering adding Australian dollar assets such as bonds to its foreign currency holdings, according to The Australian.

Bundesbank officials have reportedly been holding meetings with major Australian banks and the Reserve Bank of Australia in recent months to discuss the potential change in foreign currency strategy.

Talks began as far back as 2010, when the RBA prepared a briefing document for the Bundesbank detailing the nature of Australia's debt markets and the economy, The Australian reported.

The Bundesbank's current foreign currency reserves are dominated by US and Japanese government bonds, with 93.1 per cent of its €29.433 billion ($A37 billion) in foreign currency reserves being held in US dollar assets.

Amid the instability of the European debt crisis, the Australian dollar has proven increasingly attractive for central banks. Russia's central bank has recently added Australian dollar assets to its portfolio.