BACKGROUND

The management of sovereign foreign exchange reserves has evolved over the past years in line with changes happening in the global financial markets. For instance, persistent low returns, the rise of China as an economic powerhouse and rapid technological changes have all affected the management of sovereign reserves. In addition, the COVID-19 pandemic has adversely affected investment markets and the global economy. However, the objectives of reserves management i.e. capital preservation, liquidity provision and return generation remain the same. In the MEFMI region, the official foreign exchange reserves in most member countries have grown in the past decade as economies expanded. The increased reserves require member countries to put in place appropriate structures for the proper management of sovereign reserves. This e-learning course is an introduction to the management of official foreign exchange reserves. It introduces participants to the main principles underlying the management of official foreign exchange reserves management with a sufficient level of detail.