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Monday, April 8, 2013

Crisis prompts Europeans to hoard dollars.

 The amount of dollar cash in circulation has jumped 42% in the past five years as the proportion held abroad climbed from 56% to nearly 66%. With the eurozone crisis boosting demand since 2010, don't be surprised if the trend strengthens following the raid on Cypriot bank deposits, especially as the EU is preparing a new law that would force haircuts on large deposits in banks that fail.

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