| Description |
1 online resource (31 pages) |
| Series |
IMF Working Paper ; WP/18/31 |
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IMF working paper ; WP/18/31.
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| Contents |
Cover; Contents; I. Introduction; II. The Evolution of Reserve Managementâ#x80;#x94;â#x80;#x94;An Institutional View; III. Procyclical Reserve Management in the Crisis; IV. Looking Aheadâ#x80;#x94;The Balance of Vulnerabilities; V. Dampening Procyclicalityâ#x80;#x94;What Can be Done?; VI. Conclusion; Tables; 1. A Taxonomy of Constraints for Institutional Asset Owners; Figures; 1. Official World Foreign Exchange Reserve Holdings; 2. Central Bank Exposures to Foreign Commercial and Central Banks; 3. Decline in Bank Deposits of Official Monetary Authorities; 4. Foreign Official Net Purchases of U.S. Securities |
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5. Approved Asset Classes for Reserve Managers6. Trigger for Major Asset Allocation Changes by Reserve Managers in the Crisis; 7. Gold Prices and Central Bank Gold Holdings; 8. Reserve Manager Deposits; 9. Concentration of World FX Reserve Holdings; 10. Foreign Official Ownership Share of Market Cap; 11. Foreign Official Ownership Share of Sovereign Debt; 12. Foreign Official Ownership Share of Sovereign Debt: Procyclical Asset Classes; 13. Share of World FX Reserves: Non-Traditional Currencies; 14. Foreign Official Duration Exposure in the U.S; 15. Approved Asset Classes for Reserve Managers |
| Summary |
Motivated by the tension first revealed during the global financial crisis between the domestic and international financial stability obligations of central bank reserve managers, this paper offers some reflections along four main lines. First, the paper highlights how official reserve management has evolved to mirror important aspects of private institutional investor behavior over time, and addresses the policy relevance of this convergence. Second, evidence is documented of procyclical portfolio behavior by reserve managers during the crisis, which added to the stabilization burden shouldered by central banks in reserve currency-issuing countries. Third, in appraising the evolution of related vulnerabilities since the crisis, the paper finds grounds for both cautious optimism and lingering concern, the balance of which points to an uncertain future resolution. Fourth, some potential remedies are presented to help dampen the procyclical impulses of reserve managers in future periods of international financial turbulence |
| Notes |
16. Official Net Flows in Stress EventsReferences |
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Print version record |
| Subject |
Banks and banking, Central.
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Bank reserves.
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Banks and banking, Central
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Bank reserves
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Central Banks And Their Policies.
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International Institutional Arrangements.
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Foreign Exchange.
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Financial Markets And The Macroeconomy.
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Financial Crises.
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| Form |
Electronic book
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| ISBN |
1484342771 |
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1484342003 |
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9781484342008 |
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9781484342770 |
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