Reserves
Mauritius governor defends central bank’s funding of government
“Unprecedented times” require “unprecedented set of measures” including $1.5bn funding of government, says Harvesh Seegolam
Lower-income countries generate highest reserves growth
Most reserves portfolios appear to have weathered the Covid-19 crisis well
Few central banks consider climate risk within benchmarks
Despite central banks supporting mandatory climate risk disclosures, very few account for it in their benchmarks
Asian reserves proved more resilient in Covid crisis – reserve managers
Limited use of Fed’s ‘Fima’ facility highlights improved reserve management, says panellist
Half of reserve managers use bespoke index benchmarks
Those using external managers can choose bespoke, but public indexes remain predominant
Euro failing to challenge US dollar in global reserves – CBI Benchmarks data
Among non-European central banks euro sovereign debt accounts for just 4.1% of reserves; negative rates act as a major barrier, say reserve managers
Asia tops rankings for reserves coverage ratios
Asia leads across three main metrics, but the region may be moderating its holdings
Europe leads on reserve manager salaries
Central banks pay a wide range of salaries to their reserve managers
Many Paris Agreement signatories do not use ESG screens
Most reserve managers fail to take environmental factors into account for FX portfolios
Emerging markets act as standard bearers for tranching
Nearly two-thirds of reserve managers tranche; largest allocations made to investment tranche
Lower-income nations invest more with external managers
Third-party institutions offer staff training and new asset class investments
Collateral posting spreads among swaps users
Following the Bank of England’s example, most derivatives users now have two-way CSAs
Some large reserve managers eschew liquidity stress tests
Majority of central banks test for thin trading, but three in 10 larger managers do not
Israeli reserves reach new record high
Central bank foreign exchange purchases to finance the government deficit in 2020 partly account for increase
RBA reserves decline sharply during Covid-19 crisis
Official reserves declined from $46.7 billion in March to $33.5 billion in August
PBoC says it wants greater international use of renminbi
Chinese authorities hope "panda bonds" and response to Covid-19 will boost currency use – observers
Iranian central bank pledges oil-based bond issue
Central bank makes large foreign exchange intervention as currency comes under pressure
Central banks’ gold purchases falling sharply – WGC
World Gold Council says demand for gold-based ETFs has boosted prices
Chile and China expand bilateral swap line
Central banks more than double size of swap line and expand scope of use
Covid-19 boosts gold’s appeal among reserve managers
Central banks say gold helps replace negative-yielding sovereign bonds; equities cement position in reserve portfolios
After social distancing: prepare for national distancing
If the Covid-19 pandemic triggers a desire to onshore production, international capital flows will come under a new spotlight
Have equities passed the Covid-19 test?
Reserve managers face a rebalancing and asset allocation challenge, with Fed interventions distorting yield curves and boosting equity valuations. What’s next for asset diversification?
London court blocks Venezuelan government from using gold
Lawyers for Maduro regime say they will appeal over access to $1 billion store