Now we know!

Dollar irreplaceable, says UAE cbanker
May 31, 2009 at 03:37
http://business.maktoob.com/20090000004304/Dollar_irreplaceable_says_UAE_cbanker/Article.htm
SNIP
The central bank chief for the United Arab Emirates said he saw weakness in the dollar as a “temporary situation” and expressed support for the greenback, saying nothing could replace it as a reserve currency.
“There is no other currency to replace the dollar, not the euro,” Central Bank Governor Sultan Nasser al-Suweidi told reporters on Sunday. “It is the currency for investment.” UNSNIP

Now we know.

The business of a central bank is investment.

A central bank needs reserves,
NOT in order to determine the value of the currency the central bank administers
or to provide SOME value to that currency,

BUT a central bank needs reserves for investment.

Ivo Cerckel
honestmoney@maktoob.com