Reserves
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
Hungary’s central bank increases gold reserves by 16.4%
MNB now has highest per capita bullion stocks in central and eastern Europe
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
EM central banks, Chinese and Indian households going for gold
Financial products have made it easier to access precious metal – BdF research
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
Ten central banks diversify portfolios with new asset classes
Institutions introduce green bonds and others into their reserve holdings
Asia-Pacific has highest assessing reserve adequacy metric
Ratios broadly higher among middle income central banks
Countries with high import coverage invest more in non-SDR debt
Breakdown of asset allocations shows Europe holds nearly half of world’s ESG-focused bonds
Portfolio managers make up largest share of reserve teams
Staff average annual earnings hover around $30,000 level
Central banks ‘buying more gold’
Institutions will continue to increase purchases, World Gold Council says
‘Reserve asset competition’ explains global fiscal cycle – paper
Local fiscal shocks can trigger debt issuance abroad, authors find
EMEs’ rising reserves increase global volatility – NBER study
Emerging economies’ accumulation of foreign assets has depressed global interest rate