Reserves
Fixed income in a new era
Global reserve levels are recovering from a series of unprecedented economic shocks. In the new interest rate era, bonds became more appealing as yields rose. But they also come with the risk of devaluation as above-target inflation persists. Many…

The long and short of it: Central Banking case studies in point
Invesco comments on the case study interviews conducted by Central Banking for this report, and key reserve challenges such as global high inflation and balance sheet dynamics in emerging and advanced economies.

A turning point for reserve managers?
After many central banks’ reserves declined in 2022, how should managers evaluate their fixed income investment policies in an uncertain period following years of unprecedented shocks?

Karnit Flug on the Bank of Israel’s emergency responses and challenges ahead
The former Israeli central bank governor and current vice-president of the Israel Democracy Institute speaks with Christopher Jeffery about the BoI’s targeted emergency responses, economic uncertainties and central banking independence
The ECCB’s Timothy Antoine on currency union, cooperation and DCash 2.0
The ECCB governor speaks with Christopher Jeffery about maintaining a currency zone, addressing climate and cyber risks, the decline in correspondence banking and lessons learned from issuing a retail CBDC
Sarb governor confirms Treasury may draw on reserves to service debt
South African authorities considering use of $25 billion to address ‘expensive’ repayments
IMF renews Mexico’s flexible credit line
Two-year deal provides Mexico with $35 billion in case of crisis
Fixed income in reserves
Central Banking speaks to four officials about their fixed income investments and how monetary policy and inflation interact with reserve management.
Hong Kong’s currency peg under strain – US report
Hong Kong’s currency peg to the dollar touched its weak side more than 40 times over a year
Paper calls for Sarb to pass reserves to South African government
Report says central bank contingency account appreciated by nearly $8 billion
From debate to dilemma: should reserve managers diversify when rates are high?
Panellists discuss tranching, tactical diversification and strategic asset allocation governance in current market conditions during a Central Banking roundtable in collaboration with Invesco.
Malawi imposes capital controls after devaluation
Central bank devalued kwacha by 30% against US dollar last week
Crisis-stricken Israel has faith in central bank
Economists tell Central Banking the government must radically change fiscal priorities
Bank of Israel’s FX interventions reached $8.2 billion in October
Central bank approved $30 billion programme following Hamas attacks on Israel
BoE’s Hauser makes case against ultra-lean balance sheets
Even with central bank backstops, markets are not reliable liquidity managers, official says
Ex-governor backs candidate who wants to abolish BCRA
Guido Sandleris says ‘continuity of Kirchnerism’ would be worse for Argentina
Book notes: The economic government of the world 1933–2023, by Martin Daunton
A deep dive into the politics, personalities, trade theory and trade practice of the era, but missing a crucial element: the collapse in the US stock of money
The predicament of bloated central bank balance sheets
Swollen balance sheets carry significant risks for combating inflation, ensuring financial stability and preserving central bank credibility, independence and effectiveness. How can central banks reduce them?
Chile continues lowering rates, despite weakening peso
Central bank also halts reserves accumulation, citing market turmoil
Remittances to Mexico reach record high, says Dallas Fed
Researchers say strong US construction sector fuels funds transfers
Bank of Israel holds rate as Gaza conflict continues
Central bank stresses Israeli economy remains stable, but predicts increased deficits
Egypt restricts foreign currency credit card payments
The move comes after the central bank restricted debit card use abroad
Chile central bank acknowledges ‘very important depreciation’
Issue will feature at next week’s monetary policy meeting
Argentine candidate promises opposition seats on BCRA board
Massa promises to renegotiate IMF loan as country heads to the polls on October 22