Asset Management at Central Banks and Monetary Authorities: New Practices in Managing International Foreign Exchange Reserves

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 man