Central banks grapple with risks arising from FX reserves

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As foreign exchange reserves at central banks have increased in the years since the financial crisis, so too has the level of currency risk the banks must manage, according to panellists at a Bloomberg event in London yesterday.

Ian Stannard, head of European FX strategy at Morgan Stanley, said some central banks have had to reposition themselves in order to effectively manage the large currency reserves they have accumulated, particularly in countries such as Switzerland, whose central bank has

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