Opinion/Reserves

Gold is more than a hedge

According to this article published on Monday 12 December, the latest idea to grip the markets is that gold is poised to become the world's fourth major currency.

Comment: Gold soars

Gold prices soared to new highs on Monday 12 December, bringing this month's gain for the precious metal to 9%. Only a month ago gold traded at $470. What does the future hold for bullion and what role will central bankers play in this?

Hedge funds bet Asia will boost gold reserves

According to this article published on Tuesday 29 November, hedge funds, after sending the gold price to an 18-year high, are looking to China and other Asian central banks as the next big drivers of the precious metal.

Banks' attitude 'key to gold's fortunes'

According to this article published on Friday 25 November, fresh impetus in the gold price and continued uncertainty about the outlook for the dollar could change central banks' attitude towards the gold reserves they have been inclined to sell off over…

Brown's gold sale losses pile up as price surges

According to this article published on Monday 28 November, the recent increase in the price of gold should be something of an embarrassment for UK Chancellor Gordon Brown with the Bank of England offloading 300 tonnes of gold at close to a 20-year low…

Comment: Russia's reserve management

At a time when Russia's official foreign reserves have risen sharply due largely to increased revenues from oil exports, the Central Bank of Russia (CBR) has been remarkably transparent how it manages these reserves.

Comment: Bold plan for FX reserves

Sometimes unique policy dilemmas require unorthodox policy responses. A recent IMF discussion paper offers a bold suggestion for central banks facing increasingly sharp trade-offs related to the management of their foreign exchange reserves.

Comment: FX interventions

Most central banks have moved away from actual foreign exchange market interventions and now use communication, or verbal intervention, as a policy instrument to influence exchange rates when deemed necessary and desirable.

Comment: Venezuela's reserves

The Central Bank of Venezuela last week confirmed that it had liquidated more than half of its operational reserves and deposited the funds at the Bank for International Settlements (BIS).

Comment: Intervention tightrope

Central bank officials from three of the world's most important emerging markets this week made comments to the effect that they are intervening in foreign exchange markets and could continue to do so in the future. The reasons they put forward for doing…

Argentina explains: Why gold?

According to this article published on Tuesday 4 October, suggestions that the Central Bank of Argentina, along with other South American nations, might increase its gold holdings has now become a realistic scenario.

Why has gold been rising?

With gold reaching a near-18 year high in trading, this article published on Monday 26 September says gold bugs are now enthusiastically talking of $500 an ounce and beyond.

Central Bank of Argentina - a changed view on gold

This article published Monday 19 September says the Central Bank of Argentina has now changed its philosophy and was a purchaser of gold during 2004 as it reshaped its portfolio and may consider taking more in the future along with other Latin American…

Comment: Gold stages a comeback

With the gold price hitting 18-year highs, it is about time there was serious re-thinking among central bankers with regards to holding gold as a part of their reserve portfolios.

China's forex regime poses fresh puzzle

An article published on Tuesday 13 September says China's new rules for its currency regime could mean the country may be forced to battle the nearly $2 trillion-a-day global forex market to try to control the dollar, euro and yen exchange rates.

Comment: Managing Asian reserves

The accumulation of foreign-exchange reserves by Asian central banks is one of the most talked-about developments in international finance in recent years. Arguably, it is also one of the most misunderstood ones too - its causes and consequences being…

BOT soldiers guard the nation's finances

This article published on Monday 12 September looks at the Bank of Thailand's reserve management team. There's no longer concern about over-reacting if speculators come pounding at the barriers again, as they did in 1996-97, it says.

Asia can fight speculators without its own IMF

The Indonesian authorities plan to seek $6 billion in standby funds from Japan to bolster the country's depleting foreign reserves has seen the Indonesian currency slump to a four-year low, this article published on Tuesday 6 September reports.

Comment: How to account for gold?

Opinions on whether gold is a good investment for central banks vary, but what is beyond dispute is that the different methods of accounting for gold in their balance sheets and income statements is a source of endless confusion.

Comment: Governments eye foreign reserves

Two dimensions of official sector reserves receive a lot of attention in the press, in policy circles and from market analysts: foreign reserves held by central banks and public pension funds.

Is Japan ready for 50-year debt?

The Japanese government bond market is the world's biggest, but also among the least international, according to this article published on Monday 8 August. Perhaps the U.S. Treasury's move to issue new 30-year debt early next year will encourage Japan to…

Dilemma facing Southeast Asia's central banks

This article published on Thursday 21 April looks at the situation of Asian central banks. A cocktail of rising inflation, slower economic growth and "an aggressive" Federal Reserve is forcing local central banks to raise interest rates when their…

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