Reserve Benchmarks 2023 – executive summary
Key findings of the 2023 benchmark, including coverage ratios, strategies to tackle high inflation, new trends in asset diversification, geopolitical risks and external managers
The Covid-19 pandemic and the subsequent inflationary shock put pressure on reserve managers worldwide. Higher interest rates in the US contributed to make the dollar stronger, which weakened the exchange rate of most emerging economies. In a context of already high inflation, central banks deployed their reserves portfolios selling FX assets to boost their local currencies, putting downward pressure on import prices.
However, these interventions came at a cost. According to the Reserve
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More on Reserves
Reserve Benchmarks 2023 – model banks analysis
Data sheds light on key differences between advanced, emerging and developing economies
Reserve Benchmarks 2023 report – rebuilding buffers
Insights on portfolios coverage ratios, strategies to tackle high inflation, new trends in asset diversification, geopolitical risks and external managers
Over 15% of reserve managers plan diversification changes
Close to 14% of participants will increase diversification, while 17.2% are discussing changes
Fewer central banks added new reserve assets in 2023
Overall, 10.3% of institutions diversified their asset allocation, down from 18.6% last year
Wallstreet and others rank highest for reserves technology services
Ion’s Wallstreet treasury system tops the 2023 rankings
Reserve managers rank JP Morgan top for custody and banking
BlackRock preferred for knowledge transfer and capacity building
Reserve managers vote BlackRock as overall best asset manager
Goldman Sachs and “other” asset management firms also score highly
High income countries less likely to tranche reserves
Overall, 72.4% of central banks divide their portfolios into liquidity and investment sections
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