Reserves
S&P boosts Argentine rating one notch
Credit ratings agency Standard and Poor’s lifts Argentina’s sovereign credit rating from B- to B; cites strong economic recovery and solid debt management strategy
IMF sells ten tonnes of gold to Bangladesh Bank
Sale to Bangladesh Bank takes total Fund gold sales to 310 tonnes
FX market going global: BIS
Bank for International Settlements’ triennial survey of foreign exchange markets shows decline in prevalence of local transactions, dollar and sterling
Debt to reserve ratio key indicator of country default: World Bank research
World Bank paper identifies ratio of debt to reserves as most important indicator of sovereign default
India and China set to drive global demand for gold
World Gold Council says demand for gold jewellery in India and China will ensure robust gold market in 2010
RBI’s income plummets on low returns
Reserve Bank of India’s Annual Report shows income in past fiscal year dropped as rates of return fell worldwide; central bank expects temporarily weakened output path
Southern Sudan on the brink of collapse: deputy governor
Central Bank of Sudan deputy governor says Khartoum has starved south of foreign currency, leaving it two weeks shy of economic crisis; oil spat thought to be linked to independence referendum
Russia inches back toward dollar assets
Bank of Russia report shows percentage of dollar assets increased by end 2009, reversing trend set in two previous years; central bank also upped sovereign debt holdings and risk appetite declined
BoJ on dollar’s “exorbitant privilege”
Bank of Japan research notes that with great privilege comes great responsibility
Why attitudes to gold have changed
Jill Leyland investigates why the events of recent years, in particular the financial crisis, have tipped the balance away from net official sector selling towards net buying of gold.
Politics is hampering national wealth management
Poor communication and differing incentives between politicians and national wealth managers are undermining performance, argues Gary Smith.
Rethinking reserve management
The crisis demands a rethink on both the size and composition of central banks’ reserves, argues Ludek Niedermayer.
Donald Kohn: a life in central banking
The outgoing vice chairman of the Federal Reserve Board has spent 40 years at the central bank. He tells Blair Baker about the significant evolution in policymaking he has witnessed and, latterly, overseen.
Bear bailout vehicle turns first paper profit
Federal Reserve balance sheet data shows Bear Stearns’ assets held in Maiden Lane vehicle made a paper profit for first time since its inception
Argentina dips into central bank profit to finance expenditure
Central Bank of Argentina transfers $760m from last year’s profits to government to find expenditure; government unwilling to tap bond markets until yields come down sufficiently
Argentina lets non-banks into debt sale
Argentine central bank throws open note auction to companies, allowing them to circumvent secondary markets; move linked to rapid expansion of money supply
Swiss National Bank set to post half-year loss of $3.8 billion
SNB forecasts exchange-rate losses of more than Sfr14 billion on the back of the euro’s decline; gold gains and FX positions pare losses
Irish central bank sees profits more than double
Central Bank of Ireland 2009 Annual Report shows profits rose past the $1 billion mark last year
National Bank of Austria - Annual Report (2009)
National Bank of Austria’s 2009 Annual Report shows massive gains in reserves due to rise in gold prices
Gold should form an essential part of central banks’ liquidity portfolio
The credit crisis has highlighted that in times of turmoil, gold is one of the few assets that remains liquid, says Natalie Dempster, director of government affairs at the World Gold Council
IMF: reserve managers’ ‘procyclical’ strategies exacerbated crisis
IMF says behaviour of reserve managers compounded pressures on financial stability; highlights potential conflict between investment strategies and stability mandates
BIS sceptical on reserves role for SDR
Trying to create global currency from accounting unit would not solve problems highlighted by the crisis
Central banks’ holdings of US agency debt rise on dollar demand
Fed data show official-sector holdings of US agency securities rose for a 12th straight week; auction for seven-year US Treasury bills displayed growing demand for dollar denominated assets
Gold to put in sparkling performance: asset managers
Central bank reserve managers from around the world say gold will do better than any other reserve asset in 2010; metal’s importance to soar over near future