Central bank reserve asset management whitepaper series

Our series of whitepapers co-authored with Jennifer Johnson-Calari, (JJC Advisory, Founder and Former Head of Reserves Advisory and Management Program World Bank) and Adam Kobor (Director of Investments, New York University Endowment Fund), focus on the challenges faced by central bank reserve managers. They cover:

1. Opportunities to expand investment horizons
   Central banks have come under financial pressure as they face diminished or negative returns on traditional reserve assets. We argue the case for investment strategies based on reserve adequacy considerations rather than short-term accounting concerns.
2. Balancing stability and return objectives
   Central Banks are struggling to meet their capital preservation objectives in today’s low yield environment, how can linking a country’s external risk profile to its strategic asset allocation help them meet their objectives?
3. Managing liquidity risk
   The third whitepaper in the series examines the issue of managing liquidity risk within a market environment characterised by innovation, changing regulation and potentially tighter global liquidity.
4. Active vs passive management
   The debate around active vs passive management is a familiar one, but when and how does it make sense for a central bank to actively manage?
5. Currency composition of foreign currency reserves
   Delve into the attributes of a reserve currency from a historical perspective and consider the forces at play in the 21^st century.

Read the consolidated series