Comment: Bold plan for FX reserves

- Central Banking staff
- 16 Nov 2005

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Sometimes unique policy dilemmas require unorthodox policy responses. A recent IMF discussion paper* offers a bold suggestion for central banks facing increasingly sharp trade-offs related to the management of their foreign exchange reserves.

COMMENT BY CENTRALBANKNET

The Fund's chief economist, Raghuram Rajan, and Eswar Prasad identify a number of stylised facts related to those central banks currently holding massive stockpiles of reserves. To varying degrees these countries have not yet

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