Central Bank Reserve Management Practices: Insights into Public Asset Management from the Second RAMP Survey

doi:10.1596/33657

Publication:
Central Bank Reserve Management Practices: Insights into Public Asset Management from the Second RAMP Survey

dc.contributor.author	World Bank
dc.date.accessioned	2020-04-27T18:40:37Z
dc.date.available	2020-04-27T18:40:37Z
dc.date.issued	2020-04-27
dc.description.abstract	In the summer of 2019, the World Bank Treasury’s Reserve Advisory and Management Partnership (RAMP) conducted its second survey on central banks’ reserve management practices, with a particular focus on governance, accounting, and other operational practices. Understanding these practices is particularly relevant during the COVID-19 crisis, as central banks use their foreign currency reserves to help their countries deal with capital outflows and sharp decreases in exports, tourism, and remittances. On governance, the survey finds that the most common practice is that boards set the investment policy and guidelines, investment committees review the proposals to the board and monitor implementation, and operational units make day-to-day decisions and develop proposals for the board. Central banks have different organizational arrangements for their operational units. The survey results also show that most central banks are well-positioned to provide foreign currency liquidity during the coronavirus pandemic, as they continue to invest their reserves in high-quality fixed-income assets. At the same time, the gradual diversification to nontraditional asset classes continues. The allocation to emerging market bonds, corporate bonds, and mortgage-backed securities of central banks reserves increased slightly since the previous survey. The data show considerable cross-country differences in the way central banks manage their reserves, and in some circumstances, the analysis suggests these differences correlate with respondents’ country income groups and levels of reserve adequacy. Regarding accounting practices, two-thirds of central banks report some degree of implementation of International Financial Reporting Standards (IFRS). The survey also reveals multiple practices to distribute central bank net income to governments. However, data suggest that the transfers of profits between central banks and ministries of finance are not symmetrical—central banks are more likely to distribute profits than to receive financial support in case of losses.	en
dc.identifier	http://documents.worldbank.org/curated/en/294551588015858209/Central-Bank-Reserve-Management-Practices-Insights-into-Public-Asset-Management-from-the-Second-Ramp-Survey
dc.identifier.doi	10.1596/33657
dc.identifier.uri	https://hdl.handle.net/10986/33657
dc.publisher	World Bank, Washington, DC
dc.relation.ispartofseries	Development Knowledge and Learning;
dc.rights	CC BY 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	http://creativecommons.org/licenses/by/3.0/igo
dc.subject	CENTRAL BANK
dc.subject	BANK RESERVE
dc.subject	RISK MANAGEMENT
dc.subject	STRATEGIC ASSET ALLOCATION
dc.subject	ACCOUNTING
dc.subject	RESERVE MANAGEMENT POLICY
dc.subject	FOREIGN EXCHANGE RESERVE
dc.subject	INTERNATIONAL FINANCIAL REPORTING STANDARDS
dc.title	Central Bank Reserve Management Practices	en
dc.title.subtitle	Insights into Public Asset Management from the Second RAMP Survey	en
dc.type	Working Paper	en
dc.type	Document de travail	fr
dc.type	Documento de trabajo	es
dspace.entity.type	Publication
okr.crossref.title	Central Bank Reserve Management Practices: Insights into Public Asset Management from the Second RAMP Survey
okr.date.disclosure	2020-04-27
okr.doctype	Publications & Research
okr.doctype	Publications & Research::Working Paper
okr.guid	294551588015858209
okr.identifier.doi	10.1596/33657
okr.identifier.report	148029
okr.language.supported	en
okr.topic	Finance and Financial Sector Development::Currencies and Exchange Rates
okr.topic	Finance and Financial Sector Development::Finance and Development
okr.topic	Finance and Financial Sector Development::Insurance & Risk Mitigation
okr.topic	Finance and Financial Sector Development::International Financial Markets
okr.topic	Finance and Financial Sector Development::Strategic Debt Management
okr.unit	RAMP - World Bank Treasury’s Reserve Advisory and Management Partnership