Research/Reserves
Reserves shifting from deposits to securities – paper
Pattern may be evidence of ‘mercantilist’ motivation for excess reserve accumulation
FX hedging behind April’s dollar slide – BIS bulletin
Treasury sell-offs not correlated with greenback’s depreciation, authors argue
IMF tells Kosovo to strengthen central bank reserves
Fund says government should deposit equivalent of 1.75% of GDP as emergency buffer
EM central banks, Chinese and Indian households going for gold
Financial products have made it easier to access precious metal – BdF research
‘Reserve asset competition’ explains global fiscal cycle – paper
Local fiscal shocks can trigger debt issuance abroad, authors find
EMEs’ rising reserves increase global volatility – NBER study
Emerging economies’ accumulation of foreign assets has depressed global interest rate
IMF members will meet SDR interest payments, says paper
Fund publication notes interest rates on SDR rose sharply in last two years
Sovereign debt restructuring can be improved – paper
Authors recommend changes to GDP-linked debt and process of loss sharing
Dollarisation did not prevent monetary financing, paper finds
IMF researchers show how Ecuador created central bank money without its own currency
IMF recommends using reserves ‘prudently’ to offset dollar strength
Floating currencies, IMF precautionary lines and reactivation of Fed swap lines among possible measures
BIS report highlights challenge of modelling green reserve portfolios
Survey of central banks finds legal mandates and liquidity make green reserves management difficult
IMF blog highlights rise of ‘non-traditional’ reserve currencies
Renminbi only accounts for a quarter of the shift away from dollars
Fed and foreign investors earn lower returns on Treasuries, paper finds
Foreign investors tend to buy Treasuries when they are “expensive and offer low future returns”
Austria’s Partsch explains decision to raise equity exposures
Central bank boosted equity investments from 5% to 12% in the wake of the pandemic
BIS paper finds benefits from ‘deconstructing’ ESG scores
“Best-in-class” strategy can overcome problems with other approaches, authors say
BIS paper says investors can cut carbon footprint ‘with relative ease’
Passive investors can achieve substantial carbon reduction with simple approach, authors say
BdF paper looks at use of capital controls and foreign reserves
Many countries combine both to moderate effects of international capital flows
Less chance of “taper tantrum” in emerging markets – Dallas Fed paper
Emerging markets have larger dollar reserves to meet financing disruptions
BIS paper explores reasons for large gold reserves
Researcher says large holdings can be justified, but only for some purposes
Crises are non-linear, beware high debt levels – research
IMF paper warns against complacency on high debt levels
Decentralised reserves system brings benefits – ECB paper
Management of reserves by eurozone’s national central banks boosts competition – researchers