Mexico’s García: war implies tough trade-offs for reserve managers
Banxico reserves director says central banks may need to rethink their strategic asset allocations
The Russia-Ukraine conflict is posing challenges for reserve managers, making trading conditions difficult at a moment when many may need to enter the market.
Gerardo García, director of international operations at the Bank of Mexico (Banxico), said it became “much harder to adjust the portfolio” after the full-scale invasion began in February, because of a drop in market liquidity. This was a problem for the Mexican central bank in particular, as it was in the process of its yearly portfolio
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