Reserve management at the BCB

Alan da Silva Andrade Mendes

Introduction

Over the last few years, the Central Bank of Brazil (BCB) has implemented important changes to its reserve management investment process, sustainability approach and asset allocation. The diversification among currencies, including Chinese government bonds managed in-house, was accompanied by new asset classes, such as US agency mortgages and investment grade corporates, and new tools, such as TBAs and ETFs. The active management framework was revised, and the achievements have been encouraging. Last, sustainability has become part of the official agenda for the bank, and the

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