Reserves

When will the sovereigns return - and how?

Participants in a conference on the management of sovereign assets and reserves, hosted by Central Banking Publications, were split over when public investors will regain their appetite for risk following significant losses during the current financial…

Geithner open to Zhou suggestion, but backs buck

Tim Geithner, the US Treasury secretary, said on Wednesday that he was open to People's Bank of China governor Zhou Xiaochuan's suggestion of expanding the use of special drawing rights (SDRs) but affirmed the dollar's strength.

China's Zhou wants SDRs as global currency

Zhou Xiaochuan, the governor of the People's Bank of China, has urged countries to adopt special drawing rights (SDR) as an international reserve currency as part of a move towards a more stable global monetary order.

China concerned over Treasury holdings

Wen Jiabao, China's prime minister, has said that the country, which has the biggest stockpile of United States government debt in the world, is "a little worried" about its US Treasury holdings.

What 1 trillion can buy you

1 trillion-worth ($10.6 billion) of central bank interventions moves the yen/dollar rate by 1.7%, finds a new paper from the Bank of Japan.

Korea may use reserves to support won - report

The Bank of Korea seems willing to use its dollar reserves to bolster the ailing won, after an official told local media that the central bank was unconcerned that its foreign-exchange stockpile could fall below $200 billion.

Interview: Paul De Grauwe

The major central banks have responded differently to the global financial and economic crisis, threatening a return to beggar-thyneighbour policies, Paul De Grauwe tells Malan Rietveld

Kazakhstan devalues tenge by 18%

The National Bank of Kazakhstan has allowed the tenge's value to fall by almost a fifth against the greenback by substantially devaluing the currency's dollar peg.

China "notes" Geithner renminbi claims

An official at the People's Bank of China has said the central bank had noted US Treasury secretary designate Tim Geithner's claims that President Barack Obama believes Beijing is manipulating the renminbi to boost exports.

Korea denies renminbi reserves interest

The Bank of Korea has issued a strong denial in response to a story claiming the central bank had looked into but ultimately rejected shifting some of its reserves into renminbi.

Assets are better kept with SWFs

Countries with a large foreign asset base tend to establish sovereign wealth funds as central banks' portfolio diversification tends is limited, says a new paper from the San Francisco Federal Reserve.

Russia, Nigeria devalue, shun "losing battle"

The Nigerian and Russian central banks have both said that they will allow their currencies to depreciate to protect their reserves stockpile. The actions signal Moscow and Abuja have acknowledged that the real values of their currencies have weakened in…

What's behind the fear of intervention?

Central banks' unwillingness to defend their currencies' value through foreign-exchange intervention despite abundant dollar reserves highlights a fear of intervening. Such a fear should lead central banks to review why they hold reserves, says Ousmene…

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