Reserves
Reserve Benchmarks 2024 report – the challenge of diversification
Central banks’ insights into portfolio make-up shine light on new and old trends
In 2024 central banks have begun cutting interest rates from record highs and geopolitics is becoming more fragmented as the Russo-Ukrainian war continues. The benchmarking data shows some limited diversification, but the overall message is that central banks retain their focus on traditional safe assets, most denominated in US dollars. Fewer central banks are screening on the basis of environmental, social and governance factors, although some added green bonds to the portfolio. Gold appears more popular than non-SDR currencies.
Charts
Reserve managers’ goals for working with external managers
Central banks report different reasons for hiring external managers depending on the size of their reserves. Those with larger reserves holdings are more likely to use external managers for adopting new asset classes and gaining market intelligence. Those with smaller reserves are more likely to seek staff training.
For the full breakdown, use the benchmarking service’s interactive charts to explore the data.
Model banks analysis – Reserves 2024
Explore key differences between central banks across economy groups
Reserves data
View the full breakdown of responses to the Reserves Benchmarks.
Previous years
Reserves 2024
Reserves 2023
Reserves 2022
Reserves 2021
Reserves 2020
Reserve Benchmarks 2024 – model banks analysis
New breakdowns reveal differences in central bank reserves management by size and economic group
Reserve Benchmarks 2024 report – the challenge of diversification
Central banks’ insights into portfolio make-up shine light on new and old trends
Handful of central banks expanded swap lines in past year
Vast majority of swap lines offer US dollar liquidity
One in 10 central banks uses FX swaps to defend currency
Interventions were relatively common in past year, suggesting greater activity in spot market
Middle income countries form largest membership of World Bank Ramp
Central banks highlight market intel, support, training as partnership gains
Half of middle income central banks intervened in FX markets in 2023
Liquidity tranches form largest part of reserves in lower-middle income countries
Risk departments propose benchmarks at most central banks
Investment committees increasingly empowered to approve reserve benchmarks
Most high income central banks engage in securities lending
But liquidity stress-testing tends to be common practice across middle income institutions
Large reserve holders use external managers for intel and new assets
Staff training trumps new asset class adoption as overall goal for third parties’ engagement
Asset delegation to external managers averages just 12%
One in 10 central banks considering reviews of allocations to external managers
Central banks split over impact of US sanctions on dollar reserves
De-dollarisation, if it happens, will be very slow, central banks say
Reserve assets still rarely screened on ESG grounds
Bonds and equity indexes remain widely favoured for benchmarking