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Geopolitical shifts and the evolution of reserve management: adapting to a new reality

How great power rivalry affects central bank portfolios by the Central Bank of Brazil’s Ricardo da Costa Martinelli

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The landscape of international reserve management has undergone a fundamental transformation. What was once primarily a technical exercise centred on balancing safety, liquidity and returns within a relatively stable global order, has evolved into a complex endeavour where geopolitical risk has emerged as a central consideration. As Canadian prime minister Mark Carney stated at the World Economic Forum in January 2026, “we are in the midst of a rupture, not a transition”. This observation

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