156. Australia’s foreign currency reserves are managed by the Reserve Bank of Australia (RBA). At the end of June 2002, the gross value of the reserves portfolio was US$20 billion, representing around half of the central bank’s assets. The primary role of the reserves portfolio is to fund foreign exchange market operations that arise as part of the Bank’s broader monetary policy function. Reflecting this, the reserves are managed in a manner that gives priority to low levels of credit risk, limited exposure to market risk, and maintaining a high degree of liquidity. Subject to these objectives, the Bank also seeks to earn a positive return on the portfolio.