Benchmarking
Central banks rotate economics staff frequently
Economists typically spend only small portion of time on own research; opportunities for secondment abound
Advanced economies employ greater share of PhD economists
But both advanced- and emerging-economy central banks devote similar staffing to research
The long-term impact of Covid-19 on banknote demand
The coronavirus pandemic has challenged cash usage assumptions at a time when central banks make only limited use of longer-term forecasts
Central banks play key role in sourcing and sharing data
Institutions gather data from many sources and most share it with external researchers
Climate change on the agenda for most economics departments
Central banks explore a wide range of topics, with some differences between advanced economies and EMEs
Few central banks collaborate with private-sector researchers
Collaborations are common with academia, especially in advanced economies
Agent-based models remain rare among economics departments
Economics Benchmarks 2020 highlights the varied applications of different model types at central banks
Forecast errors marginally higher for growth than inflation
Data shows contrast between advanced and emerging economies
Central banks tend to mix research with policy functions
Institutions deploy a wide range of different governance frameworks when it comes to research
Semi-structural models are the forecast weapon of choice
Flexible modelling approach comes out on top; around half of central banks include a financial sector
Currency Benchmarks 2020 – presentation
Central Banking’s currency subject specialist Rachael King speaks with Christopher Jeffery about the future of cash, the relationship between substrates and counterfeits, and how central banks are making their cash operations more sustainable through…
Video Q&A: Andrew Geggus, BNP Paribas
Central Banking met with Andrew Geggus, global head of agency lending trading at BNP Paribas, to discuss what the bank has seen from the central banking community in response to the Covid-19 crisis, and how this has impacted the securities lending…
Currency Benchmarks 2020 report – the data behind the cash cycle
Perspectives on staffing, circulation, forecasting, fraud, substrate choice, outsourcing and climate risk
Big variation in shortest- and longest-lived banknotes
Average lifespans range from 0.6 years to 20 years, with number of denominations playing key role
Asia issues the most banknotes by volume and value
Asian central banks issue 62.3 banknotes worth $1,852 per person
Most central banks not measuring banknote carbon footprint
Very few institutions have cash climate strategy but over 50% are recycling their unfit banknotes
G+D and CPS are ‘most approved’ for banknote sorting
Just over half of survey sample endorses Munich-based manufacturer
Websites are top currency communication tool
More than two thirds of currency managers use social media; regional disparities emerge on preferred communication tools
Printing is the most outsourced area of the cash cycle
Just over 60% of survey respondents contract out currency printing; lower-income countries most likely to outsource
Only 25% of central banks operate own printworks
Larger central banks from high income countries are more likely to print notes in-house
Central banks show wide variation in cash department staffing
Different staffing levels driven in part by which institutions run their own printworks
‘Wear and tear’ the main reason for banknote exchange
Covid-19 raised fears of banknote contamination, but historical exchange is mostly due to worn notes
Reserve Benchmarks 2020 – presentation
Central Banking’s reserves subject matter specialist Victor Mendez-Barreira speaks with Chris Jeffery about tranching trends, euro stutters, climate and ESG, external managers, liquidity stress tests and coverage ratios