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Asset Management at Central Banks and Monetary Authorities

New Practices in Managing International Foreign Exchange Reserves

Editors:

  • Systematic views of best asset management practices at central banks across the globe

  • Brings a long-neglected central bank activity to the forefront of public and private sector interest

  • Edited by a senior public sector professional with deep insights into central banking and its reserve management practices

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eBook USD 169.00
Price excludes VAT (USA)
  • ISBN: 978-3-030-43457-1
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
Softcover Book USD 219.99
Price excludes VAT (USA)
Hardcover Book USD 219.99
Price excludes VAT (USA)

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Table of contents (27 chapters)

  1. Front Matter

    Pages i-xxix
  2. Introduction

    • Jacob Bjorheim
    Pages 1-14
  3. Mandate, Balance Sheet and Reserves

    1. Front Matter

      Pages 15-15
    2. Larger Central Bank Balance Sheets: A New Normal for Monetary Policy?

      • Srichander Ramaswamy, Philip Turner
      Pages 41-54
    3. Reserve Accumulation, Sovereign Debt, and Exchange Rate Policy

      • Laura Alfaro, Fabio Kanczuk
      Pages 79-90
    4. The Cost of Holding Foreign Exchange Reserves

      • Eduardo Levy-Yeyati, Juan Francisco Gómez
      Pages 91-110
  4. Domestic and Foreign Currency Assets

    1. Front Matter

      Pages 111-111
    2. Safe Assets and Reserve Management

      • Robert Neil McCauley
      Pages 131-149
  5. The Investment Decision Making Process

    1. Front Matter

      Pages 163-163
    2. How Singapore Manages Its Reserves

      • Ravi Menon
      Pages 179-187
  6. Asset Allocation in a New Context

    1. Front Matter

      Pages 209-209
    2. Reserve Management at Danmarks Nationalbank: Combining Liquidity Tiers with an Adaptive Risk Budget

      • Morten Kjærgaard, Rasmus Vahle, Jacob Wellendorph Ejsing
      Pages 211-224
    3. The Strategic Asset Allocation Framework of Banco de México

      • Gerardo Israel García López, Rafael Jiménez Padrón, Andrea San Martín Kuri Breña
      Pages 241-255

About this book

In response to the Global Financial Crisis and the COVID-19 pandemic, central banks have used all available instruments in their monetary policy tool-kit to avoid financial market disruptions and a collapse in real economic activities. These actions have expanded the size of their balance sheets and altered the composition of the asset-side. This edited book highlights how these assets are managed, providing an intellectual and practical contribution to an under-researched field of central bank responsibilities. It first reviews the sources and uses of domestic and international assets and how they complement—or possibly conflict with—the implementation of monetary policy goals. Next, the book examines the asset management mandate in a balance sheet context before turning to the investment decision-making process from strategic and tactical asset allocation to investment strategies, risk management, governance, reporting and control. Finally, it presents new developments in the field of managing assets at central banks. The individual chapters are written by central bankers, academics, and representatives from International Financial Institutions, each representing a particular aspect of the asset management practice.

 

"Practical and powerful insights from a hall of fame of investors, central bankers and scholars, are packed into this one volume. If you could have only one book on central bank asset management, this would be it."

                                  —Peter R. Fisher, Clinical Professor, Tuck School of Business at Dartmouth


"Jacob Bjorheim draws on his long experience in sovereign asset management to pull together a rich collection of insights from a broad range of expertise. Asset management at central banks has evolved and expanded considerably over the past decade. This book is a timely source of information and guidance."


                                                           —Guy Debelle, Deputy Governor, Reserve Bank of Australia


"Central bank balance sheets have grown at a tremendous pace over the last decade and a half. Drawing on contributions from scholars and experienced central bankers from around the world, this timely and insightful book sheds light on how central banks are, and should be, managing their growing balance sheets." 


                     —Kjell G. Nyborg, Chaired Professor of Finance, University of Zurich. Author of Collateral Frameworks: The Open Secret of Central Banks

Keywords

  • Central bank
  • Asset management
  • Monetary policy
  • Reserve management
  • Balance sheet
  • Strategic asset allocation
  • Tactical asset allocation
  • Investment
  • ETF
  • Market impact
  • International capital flow
  • banking

Reviews

“This excellent book fills a critical gap that has existed since the IMF guidelines were revised. It offers important insights and learning for those interested in the practicalities of asset management, how that is evolving and may continue to change, and the interface between the operation of monetary policy and the financial management of official asset portfolios.” (Graeme Wheeler, Central Banking, centralbanking.com, February 18, 2021)

Editors and Affiliations

  • University of Zurich, Zürich, Switzerland

    Jacob Bjorheim

About the editor

Jacob Bjorheim is a Lecturer at the University of Basel in the Faculty of Business and Economics, a Visiting Fellow in the Department of Banking and Finance at the University of Zurich and a member of the Investment Committee at the CERN Pension Fund in Geneva. Previously, from 2007 to 2017, he was Head of Asset Management at the Bank for International Settlements (BIS): He holds a PhD from London School of Economics and is a CFA charterholder.

Bibliographic Information

  • Book Title: Asset Management at Central Banks and Monetary Authorities

  • Book Subtitle: New Practices in Managing International Foreign Exchange Reserves

  • Editors: Jacob Bjorheim

  • DOI: https://doi.org/10.1007/978-3-030-43457-1

  • Publisher: Springer Cham

  • eBook Packages: Economics and Finance, Economics and Finance (R0)

  • Copyright Information: Springer Nature Switzerland AG 2020

  • Hardcover ISBN: 978-3-030-43456-4

  • Softcover ISBN: 978-3-030-43459-5

  • eBook ISBN: 978-3-030-43457-1

  • Edition Number: 1

  • Number of Pages: XXIX, 484

  • Number of Illustrations: 27 b/w illustrations, 123 illustrations in colour

  • Topics: Macroeconomics and Monetary Economics, Financial Services, Investment Appraisal, Risk Management

Buying options

eBook USD 169.00
Price excludes VAT (USA)
  • ISBN: 978-3-030-43457-1
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
Softcover Book USD 219.99
Price excludes VAT (USA)
Hardcover Book USD 219.99
Price excludes VAT (USA)