by Calculated Risk on 3/11/2005 01:39:00 AM

According to a Bloomberg article based on a Lehman report, China has "cut the share of its currency reserves held in dollars and raised its holdings of euros".

Lehman also predicts China will allow the yuan to fluctuate by the end of June.

First, in late February, Korea was rumored to be diversifying "the currencies in which it invests".

Then, two days ago, Japanese Prime Minister Junichiro Koizumi said his country ``in general'' needs to consider diversifying its foreign currency reserves.

Now China.