The Case for Macro Risk Budgeting and Portfolio Tranching in Reserves Management
AbstractThe set of objectives in reserves management are normally predifined and include: Protecting the economy against potential external shocks on the current account or on capital flows; invest the reserves minimizing the potential of a loss and ensuring the availability of international liquidity when necessary. Whereas the adoption of a floating exchange rate in theory reduces the need for reserves to protect against external shocks, in the context of free capital movements it will be a function of the efficiency of international markets.
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Bibliographic InfoPaper provided by Banco de la Republica de Colombia in its series Borradores de Economia with number 290.
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Other versions of this item:
- Alejandro Reveiz, 2004. "The Case For Macro Risk Budgeting And Portfolio Tranching In Reserves Management," BORRADORES DE ECONOMIA 003567, BANCO DE LA REPÚBLICA.
- NEP-ALL-2004-06-13 (All new papers)
- NEP-IFN-2004-06-13 (International Finance)
- NEP-MAC-2004-06-13 (Macroeconomics)
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