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Balancing reserve management objectives in the current economic and financial environment

· Agustín Carstens, General Manager of the Bank for International Settlements (International)

Summary written by Dark Majestic in its own words · topics: trade, fragmentation and geopolitics

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· Agustín Carstens Wiki · Bank for International Settlements WikiBalancing reserve management objectives in the current economic and financial environment

ContextRemarks at a reserve management event co-hosted with the Saudi Central Bank; the BIS serves central banks worldwide and helps them manage their foreign reserves.

Why it mattersCarstens discusses trade-offs between safety, liquidity, return and sustainability in reserves.

Problems raised
  1. Reserve managers face new challenges.
  2. Liquidity, safety and return must be balanced.
  3. Sustainability goals may lower returns.
Solutions proposed
  1. Balance the three classic objectives.
  2. Add sustainability for long-term risk management.
  3. Accept trade-offs knowingly.
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