The decade-long surge in foreign-currency reserves held by the world’s central banks is coming to an end.

Global reserves declined to $11.6 trillion in March from a record $12.03 trillion in August 2014, halting a five-fold increase that began in 2004, according to data compiled by Bloomberg. While the drop may be overstated because the strengthening dollar reduced the value of other reserve currencies such as the euro, it still underlines a shift after central banks — with most of them located in developing nations like China and Russia — added an average $824 billion to reserves each year over the past decade.

Beyond being emblematic of the dollar’s return to its role as the world’s undisputed dominant currency, the drop in reserves has several potential implications for global markets. It could make it harder for emerging-market countries to boost their money supply and shore up faltering economic growth; it could add to declines in the euro; and it could damp demand for U.S. Treasury bonds.

“It’s a big challenge for emerging markets,” Stephen Jen, a former International Monetary Fund economist who’s co-founder of SLJ Macro Partners LLP in London, said by phone. They “now need more stimulus. The seed has been sowed for future volatility,” he said.

Stripping out the effect from foreign-exchange fluctuations, Credit Suisse Group AG estimates that developing countries, which hold about two-thirds of global reserves, spent a net $54 billion of this stash in the fourth quarter, the most since the global financial crisis in 2008.

China, the world’s largest reserve holder, together with commodity producers contributed to most of the declines, as central banks sold dollars to offset capital outflows and shore up their currencies. A Bloomberg gauge of emerging-market currencies has lost 15 percent against the dollar over the past year.

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The US retirement picture is darkening (Financial Advisor)

A recent study by the National Institute on Retirement Security concluded 40 million, or 45%, of working Americans do not have a single penny saved for retirement. Those who do have money saved up have an average of $2,500 put away, a 16.7% drop from 2013. The statistics are particularly troubling for those nearing retirement, aged 55 to 64, as the median account balance for the group is just $14,500. «It's no wonder Americans believe the nation faces a retirement crisis [because] the evidence is irrefutable that the hope of retirement is out of reach for millions of middle-class Americans,» noted Diane Oakley, NIRS executive director. 

The Fed warns rate hikes will be slower and lower (Charles Schwab)

The Federal Open Market Committee removed 'patient' from Wednesday's Statement, and noted it must have 'reasonable confidence' inflation near the 2% target before it goes ahead and raises the Fed Funds Rate. In Charles Schwab's view, the current pace of economic growth remains too weak for a June rate hike, and instead suggests the Fed will move at some point in the second half of the year. Kathy A. Jones, Senior Vice President and Chief Fixed Income Strategist of Schwab Center for Financial Research suggest, «Most notable in the Fed’s release was the sharp drop in the expected path of rate hikes over the next few years.» She continued, «The median projection for the Fed funds rate at the end of 2015 declined from 1.125% to 0.625%, while each subsequent year’s estimate declined by 50 basis points or more.»

ABU DHABI — Ukrainian President Petro Poroshenko announced a deal for unspecified military and technical cooperation with the UAE on Tuesday, and said negotiations are ongoing with the United States and unspecified European nations.

Poroshenko told reporters at the IDEX show here that he hoped talks with the US would yield an agreement to help Ukraine defend itself from Russia. Poroshenko reportedly planned to meet with chief Pentagon weapons buyer, Frank Kendall, at the show.