The CNB's Foreign Exchange Reserve Management and Changes to it Since 2017

The foreign exchange reserves of the Czech National Bank (CNB) increased roughly three and a half times to EUR 124.6 billion while the exchange rate commitment was in place between November 2013 and April 2017. This unprecedented growth has led the CNB to review how the reserves are managed. This article explains the functions of the foreign exchange reserves, the way they are recorded in the central bank's accounts and the related impact on its net profit or loss. It also describes the CNB's reserve management principles and the changes it has adopted in this area since 2017.Full Publication: "https://ssrn.com/abstract=3497854" Reserve Management and FX Intervention