Reserve management: a new era

In response to criticism that he had altered an opinion, John Maynard Keynes once famously remarked: “When the facts change I change my mind. What do you do sir?” The time has come for central bankers to employ similar open-mindedness in their management of official foreign exchange and precious metal reserves. Over the past three decades, as reserves have increased in value from less than one hundred billion dollars to nearly $3 trillion, facts surrounding the uses of and the investment