Financial Times FT.com

Central banks take fewer risks

By Chris Giles in London

Published: February 18 2008 01:42 | Last updated: February 18 2008 01:42

Managers of foreign exchange reserves within central banks have become much more risk-averse since the global credit squeeze started, with safe assets back in favour.

A survey of investment managers within 51 of the world’s central banks responsible for reserves totalling $2,390bn (£1,220bn, €1,630bn), said the pressure on them to search for higher yields remained but riskier assets necessary to achieve higher returns were rapidly going out of favour.

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