Foreign Reserve Management Course


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 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

Enroll for this Course

We are proud to offer this course in a variety of training formats to suit your needs.

IRES

Enroll for a Face-to-Face (In-Person) Class

We use the highest quality learning facilities to make sure your experience is as comfortable as possible.

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IRES

Enroll for a Virtual (Zoom) Class

Join a scheduled class with a live instructor and other delegates.

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IRES

Enroll for an Online Self-Paced Class

Keep track of your own progression throughout your course and ensure continuous improvement.

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Benefits of Taking a Course at IRES

LEARN

Our courses are carefully curated to keep you abreast of latest industry trends, technological advancements, and best practices. We employ a variety of teaching methodologies, including hands-on workshops, case studies, and interactive sessions, all aimed at fostering an engaging and effective learning environment. Our expert instructors bring a wealth of knowledge and real-world experience, providing our clients with insights that can be immediately applied in their professional lives.

NETWORK

Our courses serve as a vibrant platform for professionals to connect and engage with a diverse community of peers, industry leaders, and experts. By participating in our programs, you gain access to an invaluable network that spans across various sectors and geographical boundaries. This networking aspect is not just about forming professional relationships; it's about creating a supportive ecosystem where ideas, opportunities, and collaborations can flourish.

GROW

Our courses are designed to challenge and inspire professionals to step out of their comfort zones and explore new horizons. Through a combination of theoretical knowledge and practical application, our programs help professionals refine their existing skills and acquire new ones, making them more versatile and competitive.

FAQs & Course Administration Details:

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 Phone: +254 715 077 817 or Email: [email protected].
The instructor led trainings are delivered using a blended learning approach and comprise of presentations, guided sessions of practical exercise, web-based tutorials and group work. Our facilitators are seasoned industry experts with years of experience, working as professional and trainers in these fields. All facilitation and course materials will be offered in English. The participants should be reasonably proficient in English.
Upon successful completion of this training, participants will be issued with an Indepth Research Institute (IRES) certificate certified by the National Industrial Training Authority (NITA).
Payment should be transferred to IRES account through bank on or before start of the course. Send proof of payment to [email protected].
Accommodation and airport pickup are arranged upon request. For reservations contact the Training Officer. Email: [email protected] Phone: +254 715 077 817.