ECB report confirms reserve diversification plan

The European Central Bank confirmed in its annual report on Tuesday 26 April that it is working on significant changes to its foreign reserve management strategy that would allow diversification into different financial instruments.

The plans mirror attempts to increase the returns on investments at a time when interest rates are at historically low levels. The ECB's net foreign reserve assets declined from €38.3bn ($49.6bn, £26bn) to €36.3bn last year.

The Bundesbank is not following the ECB's

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Geoeconomic reserve management

The world order is evolving. Whether, and how, the international economy remains integrated or shifts into spheres of influence has consequences for central bank policy and reserve management.

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