Reserves
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
Honey, I shrunk the Fed. (Not a sci-fi fantasy)
Promoting the discount window may be the Fed’s key to shrinking its $7trn balance sheet, says Bill Nelson
Central banks buying more gold
Emerging markets led way in sales and purchases for June, according to World Gold Council
Ethiopia adopts market-based FX regime
Move follows monetary policy reform aimed at attracting IMF funding
Trinidad and Tobago cuts reserve requirement
Central bank plans move towards market-determined instruments of policy
Argentina sells dollars in parallel FX market
Domestic currency’s CCL value jumps as central bank tightens monetary supply
Ukraine’s governor on central banking as war endures
The NBU’s Andriy Pyshnyy speaks about the need for investment and reform amid labour shortages, securing war-risk insurance and Ukrainian funding from Russia’s frozen assets
MAS carbon emissions rise amid shift to greener investment portfolio
Equity and corporate bond climate exposures fall as rising air travel and data use drive up own emissions
Book notes: Bucking the buck: US financial sanctions and the international backlash against the dollar, by Daniel McDowell
A timely and well-documented book about the weaponisation of the US dollar
Malaysia’s Rasheed expects a “bumpy road” for EM currencies
Governor Abdul Rasheed Ghaffour says BNM will intervene if needed ahead of future Fed cut; rules out capital controls but has encouraged institutions to repatriate earnings
Laotian central bank raises rates amid high inflation
Inflation in Laos has been above 20% due to weak local currency
Japan ready to intervene in FX markets, finance ministry says
Top currency official issues warning as yen hits 34-year low against dollar
PBoC and RBI have highest-ever gold holdings, WGC says
PBoC paused gold purchases in May for first time since November 2022