Bank Indonesia mulls move into risk assets
The central bank would like to boost investment returns, although any changes to its strategy will be cautious and deliberate, says senior portfolio manager Giri Purnama.
Central banks tend to keep their reserves in cash and low-risk assets, such as sovereign bonds or money-market funds, and Bank Indonesia (BI) – with $91.79 billion in reserves as of October 31 – is no exception. It does, however, have an eye on other asset classes, including equities and corporate bonds.
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