Determinants of Currency Composition of Reserves: a Portfolio Theory Approach with an Application to RMB »
Series: IMF Working Papers
Author(s): Yinqiu Lu , and Yilin Wang
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 08 March 2019
Keywords: Central banks, Capital account convertibility, Central bank aggregates, Investment policy, Monetary authorities, currency composition, FX reserves, portfolio theory, RMB, numeraire
The way central banks manage their foreign reserve assets has evolved over the past decades. One major trend is managing reserves in two or more tranches-liquidity tranche and investment tranche-especially for thos...