Appendix 1: Survey questionnaire

Which in your view are the most significant risks facing reserve managers in 2022? (Please rank the following 1–6, with 1 being most significant.)

Rising inflation	☐
Covid-related pandemics	☐
Monetary policy normalisation	☐
Exchange rate volatility	☐
Credit market pressure	☐
Geo-political tensions	☐

Please comment:

..................................................................................

In light of recent increases in inflation, and subsequent monetary policy tightening, what steps have you taken to protect the value of your reserves portfolio? (Please check as many as appropriate.)

Changed currency exposure	☐
Changed duration	☐
Changed credit exposure	☐
Changed assets invested in	☐

Please comment:

..................................................................................

Recent years have seen reserve managers diversify into new markets, assets and currencies. In your view, to what extent will rising yields affect this trend in 2022–3?

Among reserve managers broadly: (Please check one box.)


Rising yields will increase the pace of diversification	☐
Rising yields will slow the pace of diversification	☐
Rising yields will reverse diversification	☐
Rising yields will not impact the trend of diversification	☐

Please comment:

..................................................................................

In your portfolio: (Please check one box.)

Rising yields will increase the pace of diversification	☐
Rising yields will slow the pace of diversification	☐
Rising yields will reverse diversification	☐
Rising yields will not impact the trend of diversification	☐

Please comment:

..................................................................................

What percentage of your FX reserves is in ‘non-traditional’¹¹ See “Non-traditional” in this context means assets other than government bonds, supranationals, government agencies and deposits in US dollar, euro, Great British pound and Japanese yen, and gold. reserve assets?

% of portfolio: ☐

Has this changed in the past year?

Increased	☐
Decreased	☐
No change	☐

Please comment:

..................................................................................

Are you considering any change in 2022–3?

Increase	☐
Decrease	☐
No change	☐

Please comment:

..................................................................................

What is the current duration of your central bank’s reserves portfolio?

0 – 6 months	☐
6 months – 1 year	☐
1 – 2 years	☐
2 – 3 years	☐
3 – 5 years	☐
> 5 years	☐

Has this changed in the past year?

Shortened	☐
Extended	☐
No change	☐

Are you considering any change in duration in 2022?

Shorten	☐
Extend	☐
No change	☐

Please comment:

..................................................................................

To what extent do you agree that the US dollar is still the safe-haven currency? (Please check one of the following.)

Strongly agree	☐
Agree	☐
Disagree	☐
Strongly disagree	☐

Please comment:

..................................................................................

Do you see central bank digital currencies (CBDC) having an impact on reserve management from operational and investment perspectives?

	Short term		Long term
	Yes	No	Yes	No
Operational	☐	☐	☐	☐
Investment	☐	☐	☐	☐

Please comment:

..................................................................................

Does your central bank incorporate an element of socially responsible investing (SRI) into reserve management?

Yes	☐
No, but considering it	☐
No, and not considering it	☐

If “Yes”, does this include:

ESG principles	☐
Specific climate focus	☐
Avoidance of potential conflicts of interest	☐

Other²² Here we follow the NGFS categories, which build on those of Eurosif and the PRI. See NGFS pg 12. (please specify)

..................................................................................

If “Yes”, how do you integrate these into your investment process?

Part of SAA/Investment guidelines	☐
Standalone portfolio mandates	☐

Which strategies do you employ?

Negative screening	☐
Best in class	☐
ESG integration	☐
Impact investing	☐
Voting and engagement	☐

What percentage of your FX reserves portfolio do you consider SRI?

FX reserves percentage: ☐

Please comment, including percentage in other portfolio(s) (if applicable):

..................................................................................

Which in your view are the most significant obstacles to incorporating SRI into reserve management? (Please rank the following 1–6, with 1 being most significant.)

Challenge of integrating with central bank mandate	☐
Lack of clear definition of SRI	☐
Lack of consistency in disclosures	☐
Lack of/cost of obtaining data	☐
Concerns over liquidity/returns	☐
Supply of suitable products	☐

Please comment:

..................................................................................

Which of the following best represents your view of the value gold brings to reserves portfolios today? (Please rank 1–6, with 1 being closest to your view.)

Portfolio diversifier	☐
Inflation hedge	☐
Liquid asset (to trade and lend)	☐
Liquid asset (for use as last resort)	☐
Safe haven	☐
Symbolic	☐

Please comment:

..................................................................................

Do you include gold in your asset allocation decision-making process?

Yes	☐
No	☐

Please comment:

..................................................................................

Do you use derivatives in your reserve management?

Yes	☐
No	☐

Please comment:

..................................................................................

If yes, which derivatives do you use? (Please check as many as appropriate.)

	FX	Interest rate	Equity	Credit	Cross-Currency
Swaps	☐	☐	☐	☐	☐
Futures	☐	☐	☐	☐	☐
Option	☐	☐	☐	☐	☐
Other	☐	☐	☐	☐	☐

Please comment:

..................................................................................

If you use derivatives please say for what purpose(s):

Trading/positioning	☐
Hedging	☐
Duration adjustment	☐
Overlay strategies	☐
Yield enhancements	☐
Other	☐

Please comment:

..................................................................................

Has your use of derivatives changed in the past year?

Increased	☐
Decreased	☐
No change	☐

Please comment:

..................................................................................

Which of the following best describes your approach to external management services?

	Using now	Considering using now	Would consider using in 5–10 years	No interest in investing
Mandates managed by commercial asset managers	☐	☐	☐	☐
Funds managed by multilaterals, eg World	☐	☐	☐	☐
Bank	☐	☐	☐	☐
Commercial bank deposits	☐	☐	☐	☐
Central bank deposits	☐	☐	☐	☐
Pooled funds (including money market funds)	☐	☐	☐	☐
ETFs	☐	☐	☐	☐
Other	☐	☐	☐	☐

Please comment, eg on recent experience or intentions:

..................................................................................

Which best describes your attitude to the following asset classes? (Please check one box per asset class.)

	Investing in now	Considering investing in now	Would consider investing in 5–10 years	No interest in investing
Government bonds (above BBB)	☐	☐	☐	☐
Government bonds (below BBB)	☐	☐	☐	☐
Corporate bonds (investment grade)	☐	☐	☐	☐
Corporate bonds (high yield)	☐	☐	☐	☐
Emerging market bonds (above BBB)	☐	☐	☐	☐
Emerging market bonds (below BBB)	☐	☐	☐	☐
Inflation linked bonds	☐	☐	☐	☐
Green bonds	☐	☐	☐	☐
Social & sustainability bonds	☐	☐	☐	☐
Catastrophe bonds	☐	☐	☐	☐
Supranationals	☐	☐	☐	☐
US Agency bonds	☐	☐	☐	☐
ABS/MBS	☐	☐	☐	☐
Covered bonds	☐	☐	☐	☐
Deposits (with central bank/official sector)	☐	☐	☐	☐
Deposits (with commercia banks)	l	☐	☐	☐
Digital assets/currencies	☐	☐	☐	☐
Money market funds	☐	☐	☐	☐
Gold	☐	☐	☐	☐
Other commodities	☐	☐	☐	☐
Equities	☐	☐	☐	☐
Real estate	☐	☐	☐	☐
Green bonds	☐	☐	☐	☐
Hedge funds	☐	☐	☐	☐
Infrastructure	☐	☐	☐	☐

Please comment:

..................................................................................

Which of the following best describes your attitude to exchange-traded funds (ETFs)

	Investing in now	Considering investing in now	Would consider investing in 5–10 years	No interest in investing
ETFs	☐	☐	☐	☐

If investing in ETFs, please say which underlying asset classes they give exposure to:

Equities	☐
Credit	☐
Gold	☐
Other	☐

Please comment, especially on reasons for using ETFs:

..................................................................................

Which view best describes your attitude to the following currencies? (Please check one box per currency.)

	Investing in now	Considering investing in now	Would consider investing in 5–10 years	No interest in investing
Australian dollar	☐	☐	☐	☐
Brazilian real	☐	☐	☐	☐
Canadian dollar	☐	☐	☐	☐
Chinese renminbi (onshore)	☐	☐	☐	☐
Chinese renminbi (offshore)	☐	☐	☐	☐
Czech koruna	☐	☐	☐	☐
Danish krone	☐	☐	☐	☐
Indian rupee	☐	☐	☐	☐
Korean won	☐	☐	☐	☐
Malaysian ringgit	☐	☐	☐	☐
Mexican peso	☐	☐	☐	☐
New Zealand dollar	☐	☐	☐	☐
Norwegian krone	☐	☐	☐	☐
Polish zloty	☐	☐	☐	☐
Russian rouble	☐	☐	☐	☐
Singapore dollar	☐	☐	☐	☐
South African rand	☐	☐	☐	☐
Swedish krona	☐	☐	☐	☐
Thai baht	☐	☐	☐	☐
If investing in the renminbi, please give the share of your portfolio invested
☐ %

Which of the following best describes your attitude to investments and products in the onshore renminbi market?

	Investing in now	Considering investing in now	Would consider investing in 5–10 years	No interest in investing
Government bonds	☐	☐	☐	☐
Policy bank bonds	☐	☐	☐	☐
Credit bonds	☐	☐	☐	☐
Interest rate swaps	☐	☐	☐	☐
Repo	☐	☐	☐	☐
Equities	☐	☐	☐	☐

Please comment, eg on recent experience or intentions:

..................................................................................

The IMF added the renminbi to the SDR in October 2016 with an 11% share. What percentage of global reserves do you think will be invested in the renminbi by:

2022 (end of)	☐ %
2025	☐ %
2030	☐ %

Please comment:

..................................................................................

What percentage of your reserves do you think will be invested in this currency by:

2022 (end of)	☐ %
2025	☐ %
2030	☐ %

Please comment:

..................................................................................

Survey ends. Thank you very much for your participation.

HSBC Reserve Management Trends 2022

Appendix 1: Survey questionnaire

Robert Pringle and Nick Carver

CONFIDENTIALITY GUARANTEE

Search Books

Recommended Books

HSBC Reserve Management Trends 2024

HSBC Reserve Management Trends 2023

HSBC Reserve Management Trends 2022

HSBC Reserve Management Trends 2021

HSBC Reserve Management Trends 2018

Central Bank Directory 2022

HSBC Reserve Management Trends 2020

HSBC Reserve Management Trends 2019

Banknote Management for Central banks

HSBC Reserve Management Trends 2017

You are currently on corporate access.