Reserves
Central bank gold purchases slow in third quarter
Growth of net central bank gold holdings in third quarter remains positive but decelerates compared with similar period in 2011; year-to-date holdings up 9%
SNB taking outsized risk in equities in challenging environment, says board official
The Swiss National Bank has allocated 12% of its burgeoning forex reserves to global equities, a level that is significantly above an allocation based purely for diversification benefits
Ballooning balance sheet yields further ‘profit’ for SNB
Swiss National Bank’s profits show continued growth in third quarter with the largest contribution from foreign exchange holdings; balance sheet has increased 45% during the year
Dutch gold also unverified
Central banks with second, third and ninth largest gold holdings in the world admit to not physically verifying overseas gold; but some host central banks do not allow external auditors into vaults
Bundesbank reveals specific location details of gold holdings
New details of the Bundesbank’s foreign gold holdings released as Bank of Italy admits also not physically verifying gold held overseas despite having world’s third largest gold reserves
Bundesbank under pressure over $172bn gold inventory
German Federal Court of Auditors calls on Bundesbank to check gold held at Federal Reserve, Bank of England and Banque de France; Bundesbank to move 150 tonnes back to Germany over next three years
Central bankers highlight merits of fixed exchange rate regimes
Bosnian and Barbadian governors discuss the importance of a fixed exchange rate for small and open economies
Egyptian reserves fall by more than 50% to $15bn
Political unrest in Egypt has resulted in the country seeing its foreign exchange reserves tumble by $21 billion. But the situation has stabilised during the past few months
Conundrum facing reserve managers set to continue, say Nalm speakers
Central bank reserve managers to face further challenges about where to allocate their resources as reserve levels look set grow
Relative riskiness of alternative reserve assets falls, say CBP panellists
Negative real yields and credit concerns about some G7 currencies make alternative investments more attractive to reserve managers compared with five years ago, say CBP webinar panellists; role of gold challenged
Nigeria builds buffers to brace against uncertainty
Bank of Nigeria minutes show commitment to increase external reserves buffer; inflation expected to be lower than forecast
SNB bond-buying ‘exacerbating’ euro fragmentation – S&P
Rating agency says Swiss National Bank activity is deepening divergent market conditions for euro sovereign issuance
ECB paper finds US foreign bondholdings rooted in past
ECB research examines the link between past and present levels of foreign bonds held by US investors; finds similar investment patterns for both
HKMA deputy dismisses yuan competition fears
Competition in the offshore renminbi market offers opportunities that can be exploited to increase Hong Kong’s share of the market, says Eddie Yue
SNB maintains minimum exchange rate
The Swiss National Bank announces an unchanged minimum exchange rate; Swiss franc has not depreciated as expected
Reserve Bank of Fiji delivers positive economic review
Latest economic review reveals generally optimistic developments in Fijian economy; growth and inflation expected to meet projections
Bundesbank starts foreign reserve operations in Tokyo
German central bank upgrades Tokyo representative office on 25th anniversary to full trading office; starts trading in Asian timezone to lower costs and gain information edge
Central banks are major driver of gold prices, says GFMS
Latest Thomson Reuters GFMS gold survey finds central banks are supporting gold prices via large purchases; adverse economic climate and quantitative easing also contributing to price increase
Chile director presents results of fund management outsourcing
Divisional director at the Central Bank of Chile discusses changes to the management of pension reserve fund; responsibility given to external managers for first time
Bank of Thailand's Prasarn Trairatvorakul on the central bank's 70th anniversary
On the eve of its 70-year anniversary, Bank of Thailand’s governor, Prasarn Trairatvorakul, talks to Blair Baker about the central bank’s emerging role in domestic, regional and global economics
RBA minutes show bond yields at “historic low”
Reserve Bank of Australia’s August monetary policy minutes note historically low bond yields; offshore purchases of Australian dollar remain high
IMF paper evaluates reserve adequacy in emerging markets
Working paper studies the determinants of reserve holdings in emerging markets and small islands; proposes measure of reserve adequacy
Central banks make “record” gold purchases in Q2
World Gold Council says central banks bought 254.2 tonnes of gold in the first half of 2012; Kazakhstan, the Philippines, Ukraine and Guatemala among the countries that added to reserves
Central Bank of Barbados governor praises government’s fiscal strategy
DeLisle Worrell says Barbadian government’s policy strategy is appropriate to the ‘economic reality’; follows downgrade of sovereign debt to BB+ in July