Introduction
Almost every country in the world holds foreign currency reserves or “FX reserves”, which are assets of the central bank held in different reserve currencies, most commonly the US Dollar, used to back its liabilities. Foreign exchange reserves held by the Central Bank are a major national asset and a primary tool of monetary and exchange rate policy. Understanding how reserves management works is important in today's world. Foreign currency reserves make up $11 trillion of capital. The sheer size of reserves makes reserve managers some of the most important players in the global financial markets. This is in addition to the influence they have in their domestic markets on the value of their currency or on interest rates.
This course will present a 360-degree view on reserves management and will cover issues such as why central banks hold FX reserves, how much they should hold, investing in various asset classes (bonds, equities etc), managing liquidity in case the central bank needs to use the reserves, actively managing portfolios and using external managers. In addition, the course will take a look at what has changed in the post crisis world. The course will provide an understanding of strategic issues involved in setting a country's official reserves policy. The course will one to think like a reserve manager, useful for whether one works at a central bank or is exposed to any part of their operations.
Duration
5 Days
Target audience
This course is targeted to both public and private sector participants in the financial market. It is targeted to officials of government ministries and agencies directly involved in financial market matters such as central banks, state banks, development banks, agencies, finance ministries, representatives of securities exchanges and supervisory agencies. In addition, to private sector participants such as bank and other financial intermediary employees, members of exchanges / broker-dealers.
Course Level:
Course Objectives
At the end of this IRES training course, you will learn how to:
- Explain the reasons central banks hold reserves.
- Discuss issues involved in creating benchmarks for portfolios.
- Design a liquidity strategy to maximize returns while maintaining liquidity.
- Discuss the roles of the back, middle and front offices.
- Determine in what circumstances active management is appropriate.
- Explain how best to use external managers.
Course Outline
Module 1
- Introduction to Reserves Management
- What is Reserve Management and Why is it Important
Module 2
- Reasons central banks hold reserves.
- Benchmarks for portfolios and Portfolio management
Module 3
- Liquidity, Compliance & the Middle Office
- Active Management & the Use of External Managers
- Reserve management service
Module 4
- Level and adequacy of foreign reserves
- Financial instruments used in reserve management
- Investment guidelines and strategic benchmarking
Module 5
- Performance measurement
- Market and credit risk control
Related Courses
Course Administration Details:
Methodology
These instructor-led training sessions are delivered using a blended learning approach and include presentations, guided practical exercises, web-based tutorials, and group work. Our facilitators are seasoned industry experts with years of experience as professionals and trainers in these fields. All facilitation and course materials are offered in English. Participants should be reasonably proficient in the language.
Accreditation
Upon successful completion of this training, participants will be issued an Indepth Research Institute (IRES) certificate certified by the National Industrial Training Authority (NITA).
Training Venue
The training will be held at IRES Training Centre. The course fee covers the course tuition, training materials, two break refreshments, and lunch. All participants will additionally cater to their travel expenses, visa application, insurance, and other personal expenses.
Accommodation and Airport Transfer
Accommodation and Airport Transfer are arranged upon request. For reservations contact the Training Officer.
- Email: [email protected]
- Phone: +254715 077 817
Tailor-Made
This training can also be customized to suit the needs of your institution upon request. You can have it delivered in our IRES Training Centre or at a convenient location. For further inquiries, please contact us on:
- Email: [email protected]
- Phone: +254715 077 817
Payment
Payment should be transferred to the IRES account through a bank on or before the start of the course. Send proof of payment to [email protected]
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