‘Weaponization’ of Reserves Is a Top Risk for Central Banks
- Weaponization of FX reserves is a growing concern, poll shows
- Geopolitical conflicts are the main threat to global economy
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Central bank reserve managers are increasingly worried about the safety of their currency assets, citing rising geopolitical risk across the world, according to a UBS Group AG survey.
The so-called “weaponization” of FX reserves was listed as a top risk by a third of the participants, double last year’s amount. The biggest concern for 87% of 40 central banks surveyed by UBS was a further escalation in the tensions between Russia and Ukraine, China and the US, as well as the situation in the Middle East.