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Reserves

ECB paper on foreign reserves management

The ECB Working Paper "Foreign reserves management subject to a policy objective," published May 2006, studies the implications of introducing an explicit policy objective to the management of foreign reserves at a central bank.

Comment: Reserves management update

How much has changed in the last year in the world of official reserves management? The same issues - the threat of a weakening dollar, central banks' role in bring this about and their response to it, a continuation of the unprecedented accumulation of…

African central bank sells gold

A private Saudi jeweller has bought 36 tonnes of raw gold from an African central bank for 1.8 billion riyals, a company spokesman was quoted by Reuters as saying on Monday 22 May, confirming a newspaper report.

FX reserves, US deficits and global imbalances

This article published Thursday 11 May provides detailed information on foreign reserve holdings. Global reserves continue to mount this year, it says, amid renewed downward pressure on the U.S. dollar and a fresh rise in oil prices.

Chinese economists want increased gold reserves

Some Chinese economists are urging the government to increase its gold reserves to 2,500 tons from the current 600 tons because the country's foreign exchange reserves had become the world's largest, an official industry newspaper reported this week.

Why economists worry about foreign reserves

According to the article "Why economists worry about who holds foreign currency reserves" published Tuesday 9 May, the idea that China or some other American rival could someday use its vast holdings of U.S. debt as a geopolitical weapon is gaining…

PBOC trying to cool overheating sectors

The People's Bank of China is seeking to cool overheating economic sectors such as real estate as well as cut its huge foreign exchange reserves, a senior Chinese government official said.

Philippines, Japan sign currency swap

The Philippine central bank and the Bank of Japan have signed a currency swap arrangement letting both countries draw from each other's foreign reserves for any "immediate need".

Comments: Reserve diversification

Recent reports of the diversification official foreign exchange reserves in the Middle East have not gone unnoticed. Economists are starting to ask if the prospect of large-scale reserve diversification is back on the international agenda, following a…

Srejber on how the Riksbank's assets are managed

In the speech 'How the Riksbank's financial assets are managed' given on 25 April Eva Srejber of the Sveriges Riksbank said by investing in asset types with credit risk, that is, other fixed-income securities than government bonds, we can increase the…

Comment: Will the Fund's new approach matter?

Stephen Roach, managing director and chief economist of Morgan Stanley, suggests that the renewed debate on the role of the international financial institutions is missing questions that "should be near the top of the global agenda".

Riksbank changes currency allocation

Sweden's Riksbank announced on Friday 21 April that it has reallocated the currency holdings in the bank's foreign currency reserves. The changes include a move away from US dollar holdings in favour of euros.

Reserve diversification

Sweden's central bank is the world's oldest, and according to this article published on Friday 21 April, it is also proving to be among the most proactive in managing its foreign exchange reserves.

Comment: Sweden sheds reserve dollars

The Swedish Riksbank dropped a bit of a bombshell on international currency markets on Friday 21 April by announcing a significant reduction in the share of dollars and yen in its foreign reserves portfolio. Although Sweden has a relatively small…

China short-term gold additions unlikely - GFMS

The People's Bank of China is very unlikely to increase its gold reserves in the short-term but in the medium- to long-term there is "excellent scope" for gold purchases by the central bank, metals consultancy GFMS said on Wednesday12 April.

More hefty gains in gold price ahead?

This article published on Thursday 13 April looks at the possibility of a further strong increase in the gold price. Among the key factors is a belief that central banks are becoming more friendly to gold, it says.

China dollar reserves pose risk - report

China's foreign exchange reserves are exposed to heavy risks of US dollar fluctuations but there are no other alternatives now that can replace the greenback, a researcher said in an article published in the China Business News.

Will IMF set sights on managing global reserves?

This article published on Saturday 8 April says that some indication of the IMF medium-term strategy report's likely content can be gleaned from a series of speeches given over the past two months by de Rato, and deputy managing directors Takatoshi Kato…

NY Fed's Geithner on risk management challenges

In the speech 'Risk management challenges in a changing financial environment' given on 5 April Timothy Geithner of the Federal Reserve Bank of New York said economic stability should not make investors complacent to the possibility of future financial…

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