Reserves
SNB board member speaks on ‘very limited' ethical investment programme
A desire not to move markets informs the SNB's decision not to provide details on its new ethical investment strategy, which will affect a 'very limited' number of companies
SNB expands equity holdings in ethical investment drive
Switzerland’s central bank increases its equity holdings by $18 billion to $77 billion in 2013; refuses to invest in companies that cause 'severe environmental damage'
BoE could act as lender-of-last-resort for Scottish banks
Bank of England's Mark Carney refers to European Union's discretionary approach during euro crisis; suggests independent Scotland would need to increase foreign reserves
Swiss upper house rejects initiative that would force SNB to double gold holdings
Proposal that would require central bank to hold at least 20% of total assets in gold is slated for referendum but political establishment is strongly opposed
Central Bank of Oman's Hamood Sangour Al Zadjali on the dollar, financial stability and Islamic finance
The Central Bank of Oman remains committed to the dollar as it moves to improve governance, liquidity management and Islamic finance in the sultanate, its executive president tells Chris Jeffery
Reserve manager of the year: Central Bank of Colombia
The Central Bank of Colombia’s dynamic reserves management strategy and impressive performance amidst turmoil in the US dollar and emerging market currencies made it stand out from the crowd
Bolivian central bank under fire for lending to public enterprises
IMF tells CentralBanking.com the unorthodox practice is ‘counterproductive' and out of step with international norms; bank's constitutional mandate and lending arrangement makes loans legal
Central Bank of Aruba 2012 annual report highlights drop in inflation
Average annual inflation in the Caribbean territory dropped from 4.4% in 2011 to 0.6% last year; says international reserves 'remained adequate'
RBA's Stevens says exchange rate disconnected from fundamentals
RBA governor Glenn Stevens says Australia's current exchange rate is not supported by the country's relative levels of costs and productivity
Bank of Lithuania prepares for move into equities
Central bank announces plan to invest in riskier assets after returns on its foreign reserves drop close to zero; follows gradually increasing trend among central banks
BIS banking department deputy makes switch to State Street OIG
Founder of State Street's Official Institutions Group John Nugée will retire in October, and be replaced by Louis de Montpellier of the BIS
IMF figures show advanced economies loading up on Australian dollars
Stock of foreign exchange reserves continues upward trajectory, with Australian currency finding favour in advanced economies, and the Canadian dollar in vogue in emerging nations
Turkish central bank steps in to calm forex markets
Capital outflows have prompted Turkey's central bank to purchase local currency in a bid to smooth ‘market volatility'; move seen as signalling a failure of the bank's 'Reserve Option Mechanism'
ECB taken to task over SME finance in Central Banking debate
Participants in latest Central Banking On Air debate accuse central banks of 'unreasonably neglecting' SME funding difficulties; question whether the type of assets central banks hold is important
IMF paper scrutinises ‘procyclicality’ in reserve management
Over half of central bank reserve managers surveyed by IMF say they would alter practices to reduce procyclicality; paper questions reliance on credit rating agencies
Italians back using gold reserves to lower funding costs
A survey commissioned by the World Gold Council finds that Italians would support the creation of gold-backed bonds; sovereign bond yields fall further as new government is formed
Central bankers back equity investment for reserves
Almost two-thirds of respondents to CentralBanking.com poll believe central banks should invest some of their reserves in equities; most say investment should be kept below 10% of portfolio
Bank of Israel director says central banks can 'overdo' liquidity
Andrew Abir identifies difficulty in providing the right amount of liquidity; says the risk of impairing market function was one worth taking
IMF paper says competition is a motive for forex intervention by emerging markets
Study examines activity of emerging market economies in foreign exchange markets; finds competitiveness can be a motivating factor
Nalm 2013: Bank of Israel’s Abir challenges credit risk assumptions in reserve management
Head of market operations Andrew Abir asks how bonds and equities can be consolidated under one reserve management framework; insists credit rating agencies remain valuable
Nalm 2013: Delegates debate reigniting European ABS market
Participants at Central Banking event discuss mechanisms to get European financial markets off life support; particular focus on asset-backed securities
Nalm 2013: National Bank of Austria analyst sets out currency diversification strategy
Portfolio analyst details models and analysis used to determine National Bank of Austria’s currency portfolio; shows diversification gives better risk/return
Nalm 2013: Debate rages over how to manage expanding reserves
Central banks enter into new asset classes and alternative currencies but Bank of Israel’s Andrew Abir rejects value of renminbi as a reserve currency
Gold should dominate RMB in central bank reserves, says WGC
World Gold Council encourages central banks – particularly in emerging market economies – to diversify into gold ahead of RMB and other ‘alternative’ currencies