Reserve managers cut duration as inflation surges
Central banks with bigger portfolios often combined this with changes in currency and asset allocation
A majority of reserve managers shortened the maturity of their portfolios as their main policy to stave off the negative impact of higher inflation on asset values.
This is one of the main findings of Central Banking’s HSBC Reserve Management Trends 2022. The study was carried out in February and March 2022, with the participation of 82 central banks, which globally manage approximately $7.3 trillion in reserves.
In the second half of 2021, inflation started to rise in the US, UK and the
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