Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 31, 2019 erstellt
Description:
Foreign exchange (FX) reserves are an integral part of emerging market (EME) central banks' policy toolkit. They insure against shocks and complement monetary policy to achieve price and financial stability. But building and holding FX reserves is costly. Drawing on a recent survey of 21 EME central banks and their contributions published in this volume, this paper highlights that most have gradually broadened the range of assets and currencies in their reserve portfolios, to diversify and to raise their portfolios' return. Exposure to credit risk remains very low, and risk-sharing arrangements with the Treasury reduce some central banks' exposure to market and exchange rate risk. While the US dollar dominates most portfolios, the currency composition also shows strong regional patterns. Full Publication: "https://ssrn.com/abstract=3497854" Reserve Management and FX Intervention