How to deal with geopolitical risks, central banking-style
Managing the fastest-rising risk category requires a combination of old and new thinking
‘One battle after another’, the title for the latest Academy Award-winning film, could also describe the sentiment at many central banks around the world during the past few months as they have tried to manage geopolitical risks.
Following the capture of Venezuelan leader Nicolas Maduro, US president Donald Trump threatened to annex Greenland in January, casting doubt over the longstanding trans-Atlantic alliance. Then came the US-Israeli war with Iran and its retaliation against Gulf states
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