The CNB's Foreign Exchange Reserve Management and Changes to it Since 2017

7 Pages Posted: 13 Dec 2019

See all articles by Marek Mora

Marek Mora

Czech National Bank (CNB)

Jan Schmidt

Czech National Bank (CNB)

Date Written: October 31, 2019

Abstract

The foreign exchange reserves of the Czech National Bank (CNB) increased roughly three and a half times to EUR 124.6 billion while the exchange rate commitment was in place between November 2013 and April 2017. This unprecedented growth has led the CNB to review how the reserves are managed. This article explains the functions of the foreign exchange reserves, the way they are recorded in the central bank’s accounts and the related impact on its net profit or loss. It also describes the CNB’s reserve management principles and the changes it has adopted in this area since 2017.

Full Publication: Reserve Management and FX Intervention

Keywords: Czech National Bank, foreign exchange reserves, foreign exchange reserve management

JEL Classification: E58, F31, G11, G32

Suggested Citation

Mora, Marek and Schmidt, Jan, The CNB's Foreign Exchange Reserve Management and Changes to it Since 2017 (October 31, 2019). BIS Paper No. 104i, Available at SSRN: https://ssrn.com/abstract=3501073

Marek Mora (Contact Author)

Czech National Bank (CNB) ( email )

Na Prikope 28
CZ-11503 Praha 1
Czech Republic

Jan Schmidt

Czech National Bank (CNB) ( email )

Na Prikope 28
CZ-11503 Praha 1
Czech Republic

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