Without fuss, the Reserve Bank of Australia has reduced the amount of money on deposit with offshore commercial banks in the past year, ending years of using them to hold part of Australia's $37 billion official foreign reserves.

Traditionally, under a long held benchmark, the bank held up to 10% of the country's foreign exchange reserves in unsecured deposits with commercial banks rated AA-minus or better. Now the bank has eliminated that part of the benchmark it uses to manage the foreign exchange reserves, according to the latest annual report from the central bank, which was released a week ago.