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 BY CENTRALBANKNET

The Fund's chief economist, Raghuram Rajan, and Eswar Prasad identify a number of stylised facts related to those central banks currently holding massive stockpiles of reserves. To varying degrees these countries have not yet

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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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