While Asian markets are influenced by the prolonged wait for interest rate cuts in the US, the central banks in the region are seen to have very different objectives in the coming six months.
Tag : central bank
Gold will continue to appeal to asset owners amid economic uncertainty and persistent inflation, according to experts.
The Monetary Authority of Singapore's increased holdings follows a banner year for central banks buying the precious metal globally.
Investment gains were S$4 billion, down from S$22.8 billion last FY, and a strengthening Singapore Dollar resulted in a negative foreign exchange translation of S$8.7 billion.
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The National Bank of Cambodia has seen its reserves swell by 20% to 30% a year. That’s leading it to invest in US Treasuries but also renminbi bonds and gold.
The newly appointed chief investment strategist for official institutions at State Street Global Advisors sees the potential for Asian central banks to put as much as $1.5 trillion into stocks.
Most official institutions are also planning to raise their alternative allocations, put more resources into risk analytics and financial technology, and increase their level of disclosure.
The Bank of Thailand must come up with a strategy for allocating to international equities and may seek to invest more than the 4% allocation initially mooted.
South Korea’s central bank has decided on the new chief investment officer for its $360 billion in foreign reserves. Lee Dong-Min will replace Eugene Kim in early March.
While some blame recent global volatility on the US Federal Reserve, central bankers say stimulus policies are now an accepted and widely used way to encourage growth.
The country's move to alter investment caps on sovereign bonds for foreign institutions amid the recent sell-off should help further boost interest in Indian assets, say custody executives.
Choo Heung-Sik, head of the central bank’s reserve management group, is keeping an open mind to alternative opportunities and sees emerging markets as increasingly important.
