Official reserve holdings and investment in certain asset classes has become a growth industry, leading to a new focus on increased returns along with banks’ traditional preference for
maintaining liquid portfolios. This collection of 19 papers from experts and frontline veterans keep one eye on the new focus while also explaining how new accounting rules impact income
recognition and profit distribution. Their topics include the trends and issues in central bank reserve management, issues concerning the size of central bank reserves, including foreign
exchange reserve and the cost-benefit approach to reserve adequacy, reserve management’s relationship with liquidity, including a developing country case study and reports from Europe and
Canada, and implications of these changes for central bank balance sheets, including governance aspects and the relationship between reserve accumulation and volatility. Annotation ©2007 Book
News, Inc., Portland, OR (booknews.com)
