Data
Reserve managers vote BlackRock as overall best asset manager
Goldman Sachs and “other” asset management firms also score highly
High income countries less likely to tranche reserves
Overall, 72.4% of central banks divide their portfolios into liquidity and investment sections
‘Illiquid lemon markets’ can worsen crises – NBER paper
Authors extend George Akerlof’s Nobel prize-winning work to the macroeconomy
Will the use of CBDCs improve cross-border payments?
International trials using CBDCs highlight significant architectural and practical challenges, writes Warren Coats
Fewer than half of reserve managers perform liquidity stress tests
Approach tends to be more common among African and American institutions
FX reserves commonly invested in US Treasuries, bank deposits
SIBs and EU NextGeneration fund trail behind, as reserve managers avoid infrastructure and crypto
Colombian research offers advice on modelling Covid-19 shock
Pandemic is challenging to model due to its transitory impact, authors say
Few central banks expanded existing swap lines over the past year
Nearly one-third of new and existing lines are denominated in US dollars
Trade in other currencies will reduce USD reserves share, say managers
Over 72% of respondents believe efforts to denominate trade in other currencies will have long-term effect
External managers hired to set up new asset classes and train staff
Central banks also look to external managers to boost returns and access market intelligence
Reserve managers cut duration as top inflation-proofing strategy
No respondent reports expansion into non-conventional assets
Boards responsible for benchmark approval at most central banks
Over half of lower-middle income respondents favour investment committee over other methods
Central banks’ average import coverage ratio falls further
Upper-middle income institutions tend to have a higher ratio
Reserve management staff salaries increase by almost 6% from last year
Staff in Europe remain the best paid globally
Data privacy and protection: non-negotiable supervisory equations
Manoj Singh says data protection is essential to modern finance, but throws up myriad supervisory challenges
Managers divided on sanctions effect on US dollar as reserve currency
Over 43% say it will weaken its status, but nearly 40% say it will not have meaningful long-term impact
UK nearing top of rate cycle, Bailey says
MPC member Swati Dhingra says producer prices could herald rapid decline in headline figure
Legal dispute pits Costa Rica central bank against financial supervisor
Regulator has refused to hand over credit data, and central bank has filed criminal charges
Financial Stability Benchmarks 2023 – executive summary
Key findings of the 2023 benchmark, including resources, regulation, macro-pru, crime and future risk
Non-banks taking on significant ‘hidden leverage’, FSB warns
Off-balance-sheet positions have grown, but data on many parts of the system is poor
Financial regulators: one, two, maybe a few?
As Jamaica moves to introduce the ‘twin peaks’ approach to financial oversight, Ben Margulies assesses some of the pros and cons
Eurozone inflation expectations remain stagnant
Consumers’ 12-month expectations remain unchanged at 3.4%
Jackson Hole in the wake of policy rules
Symposium heralds a shift to relying on incoming data and judgement, rather than rules or even formal models, to hit inflation targets, writes Barry Eichengreen
House prices suffer steepest fall since global financial crisis
BIS data shows sharp falls in many advanced economies, though prices are still up on 2010