Bank Indonesia mulls move into risk assets

Central banks tend to keep their reserves in cash and low-risk assets, such as sovereign bonds or money-market funds, and Bank Indonesia (BI) – with $91.79 billion in reserves as of October 31 – is no exception. It does, however, have an eye on other asset classes, including equities and corporate bonds. Like the majority of institutions, BI went into ‘risk-off’ mode after the sub-prime crisis emerged in 2007, reducing its allocation to money-market assets and its use of derivatives, …