Reserves
Central banks on average intervened in FX markets 21 times in past year
Minority of respondents expanded access to swap lines
Bolivia’s forward gold sales are legal workaround – expert
Central bank raises almost $600 million in hard currencies by committing to sell bullion at future date
Argentina sells $379m in FX market to prop up peso
BCRA intervenes for second time since implementing managed float regime in April
Majority of reserve management strategies unchanged by US tariffs
Some central banks have changed duration or currencies, but for most, business remains as usual
Central banks modestly increased duration in past year
Some changed duration due to tariff impact, but not all in the same direction
Securities lending banks engage external managers for new assets
Allocation to third parties rises year on year to 15.6% on average
Investment remains largest tranche of most FX reserves
Asset-screening central banks more likely to operate other tranches
Smaller reserve holders rarely lend securities or conduct stress tests
CVAR remains widely used risk management technique
Options for realising gold revaluations
Is monetary gold a special case in central bank revaluations accounting?
Reserve managers typically do not employ negative screening
Central banks with short-term import coverage more likely to utilise tool
Many managers assess reserves with benchmarks and other approaches
Central bank board remains top body granting approval for reserve benchmarking
European central banks shift reserves from US Treasuries to euro assets
US Treasuries still make up largest share of respondents’ reserves globally
Two in five large reserves holders reduce dollar allocations
Yet central banks’ FX holdings remain broadly denominated in US currency
Reserve managers widely satisfied with staff strength and resources
Large reserve management teams tend to earn higher salaries
Central banks purchasing less gold, says WGC
July figures show a slowdown in net purchases of the precious metal
Book notes: King dollar, by Paul Blustein
A well-researched overview of the position of the US currency, providing an optimistic view on the future of ‘king dollar’.
Is this time different for Argentina?
Reserve shortage and overvalued currency cast a pall over an otherwise successful stabilisation campaign
Chile launches programme to shore up FX holdings
Central bank aims to increase reserves by 40% and reduce role of foreign currency credit lines
The foundations of sovereign finance are quietly evolving
Digital settlement infrastructure is taking shape. Now SSA issuers must decide how, not whether, to participate, argues Domenico Nardelli
Libya pilots FX platform as currency crisis continues
Foreign currency in short supply and counterfeit notes still in abundance
More independent central banks take on greater risk – ECB paper
Low rates, tighter fiscal policy and good growth accompanied by higher risk-taking on balance sheets
Kazakh central bank denies it is adding crypto to reserves
National Bank of Kazakhstan says “no decision has been made” on strategic crypto reserve
Ex-BCRA chief: Argentina missed window to rebuild reserves
Authorities could have bought more dollars during prime export season, argues Martín Redrado
Central bank watch: Biased to ease, for now
A mid-year review of the monetary policy outlook for G10 central banks, India, China and South Korea