RAMP Survey Shows More Central Banks with Larger Foreign Reserves Can Target EM Equities
Posted on 11/10/2021
Created in 2001, RAMP is a program developed within the World Bank Treasury. The RAMP Partnership serves nearly 80 members, including mostly central banks as well as international financial institutions, pension funds, and sovereign wealth funds. Together, RAMP members manage over US$ 2 trillion of sovereign assets. RAMP stands for Reserve Advisory & Management Partnership.
The Third RAMP survey on the Reserve Management Practices of Central Banks revealed some fascinating statistics. The 41-question survey occurred in the first quarter of 2021. 119 central banks participated in the survey.
Larger Central Banks with Foreign Reserves (More than US$ 50 billion in AUM)
21% of central banks with foreign reserves exceeding US$ 50 billion can invest in emerging market equities versus 34% of those in developed market equities.
48% of central banks with foreign reserves exceeding US$ 50 billion can invest in mortgage-backed securities versus 24% of those in asset-backed securities.
45% of central banks with foreign reserves exceeding US$ 50 billion can invest in investment grade corporate bonds versus 3% of those in high-yield corporate bonds.