Day One, Wednesday 4 September 2019

New dynamics of financial markets and reserve management

Evolving trends in trade and growth in Asia


Registration and breakfast


Welcome Address and Chairperson’s Opening Remarks


Global economic outlook: what can we expect in international and domestic markets?

  • Financial markets and EMEs: back to the upturn face of the global financial cycle?
  • Asia’s financial resilience: global and domestic factors
  • US: further growth slowdown due to the fading of fiscal stimulus and financial volatility
  • Growth in 2019 and 2020: supported by the expansion of investments and exports


Financial markets in Asia - turning challenges into opportunities

  • Challenges for the Asian economies: navigating China’s economic transition
  • Crucial role of financial market development
  • Implementing a robust and adaptive regulatory framework and effective international coordination
  • Mitigating potential financial stability risks 

US-China trade tensions: what does this mean for Asia?

  • A troubled trade landscape: Asia’s response
  • Expanding connectivity amidst rising trade tensions
  • Risk of excessive tightening of international financial conditions 
  • How imposing tariffs on all Chinese imports could see a much more prominent slowdown in regional growth


Morning networking Break

Asset allocation: evolving and adapting to new demands


Rising rates, trade tensions, and the impact on fixed income

  • Operating in an era of policy normalization and rate hikes
  • Political tensions: threatening the stability of global bond markets
  • How should sovereign and government funds manage fixed income portfolios given these evolving risks?
  • China-US trade negotiations- an important juncture in trade and investment relations


Diversifying reserves portfolios: how to get your portfolio fit in 2019 and beyond

  • Reserves management policies and guidelines review – the diversification drive
  • Why investors should consider a regionally diversified portfolio in 2019
  • Securities lending as a diversifying tool
  • How to manage risk when investing in a diversified portfolio


Renminbi’s role in FX reserves holdings and latest development as a reserve currency

  • Asset class diversification: a key theme for central bankers
  • Increasing allocations to the renminbi-denominated bond markets
  • Climbing the reserve currency league table with an aim to contend with the dollar for the top spot





Reserve management evolution

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Outlook on risk management in a changing macro environment

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Opportunities to expand investment horizons 

  • Shifting foreign currency reserve dynamics 
  • Aligning policy objectives, investments objectives and guidelines 
  • Achieving greater flexibility to meet policy objectives while seeking to enhance investment returns 

Central bank risk management – evolving with the times 

  • Diversifying market and default risk in high grade bond portfolios 
  • Optimal active portfolio management and relative performance drivers
  • Development of a financial risk management framework 

The next wave of reserve management: 2020 and beyond 

  • Growing trends in reserve management practices
  • How market dynamics have been driving changes in reserve portfolios
  • How low yields have reserve managers looking for fixed income alternatives
  • Changes in the currency composition of reserve portfolios against a background of rising trade tensions 

New challenges and emerging risks facing central banks 

  • The “new normal” in the macroeconomy and its implications for monetary policy
  • Enhancing the risk management toolkit 
  • New challenges posed by financial innovation and the new technologies

Active management and the use of external managers

  • Overview of the investment approach
  • How to approach operations diligence for external managers: search, selection, diligence and appointment
  • External managers: fitting into the overall investments

A methodology to measure and monitor liquidity risk in reserves portfolios

  • Monitoring liquidity risk: becoming a priority 
  • The methodology which allows central banks to measure liquidity 
  • Time required to liquidate and the cost of liquidation
  • How the methodology can also be used to measure portfolio liquidity under stress scenarios


Afternoon networking break



The outlook for balance sheet evolution

  • How the balance sheet has evolved both in size and composition post financial crisis
  • Where can we expect to see financial vulnerabilities brewing in the world?
  • Advancing towards quantitative tightening
  • Handling challenges ahead: from shrinking demand for notes and coins to QE of monetary policy


Currency composition of foreign currency reserves

  • The Dollar: attributes and reasons for persistence as the dominant currency 
  • The Renminbi: building the infrastructure to support its globalisation
  • Gold: its resurgence... as a reserve "currency"
  • Criteria for acceptance of a currency for reserves


Chair's closing address


Networking reception


National Asset-Liability Management Asia Dinner

Day Two, Thursday 5 September 2019

Balancing risk and return: the evolution of opportunities



Registration and breakfast


Welcome address and chairperson’s Opening Remarks


The US economy in 2019: recent policy developments and the longer term challenges

  • Monetary policy developments in the United States and the evolving longer-term challenges
  • How vulnerable is the global economy to a synchronised slowdown from both US and China?
  • What type of policies must countries pursue to build resilience?


The ecosystem of central banks: a time for transformation


Morning networking break


Greening the financial system: the new role of central banks

  • ESG’s and green financing’s place in investment portfolios 
  • How to incorporate an ESG policy into an investment portfolio
  • Climate change: a powerful new force for central banks and climate-related risks
  • The current difficulties associated with ESG and how it demands a multifaceted approach


Implementation of the digital fiat currency system

  • Pursuing central bank digital currency as a means to broader market access 
  • Project sand dollar: the use of FinTech to enhance financial inclusion 
  • Achieving equal, expanded access to modernised digital payments capabilities

Bracing for changes and challenges ahead - the outlook for 2020

  • How have markets coped with major events over the past year, and what does that mean for the year ahead?
  • A year of political uncertainty and the challenges associated 
  • How to minimise these bouts of political uncertainly and market volatility in the run up to major elections
  • How do new technologies shape the future of central banking?
  • What economic trends will shape investment strategies in the year ahead?


Chair’s Closing Address