966
Serial number: 11/2013
Author(s): A. Babayev
Language: Azerbaijani
Date: 2013
Abstract: The increasing size of official foreign exchange reserves after years of continued expansion, especially since the Asian crisis, have led to rising interest for the ways of asset management and the impact of reserves on financial markets. Reserve management practices have evolved substantially over the past decade or so, reflecting changes in both the economic and the broader institutional environment.
This paper documents some of the main changes in foreign exchange reserve management practices, considers the main drivers behind them, and explores some of the challenges ahead. Special focus is given on those challenges that could have a more significant impact on financial markets.
Key words: Central bank, financial crisis, financial stability, reserve management
JEL classification: E58, G01
