Foreign exchange reserves of the European Central Bank
The foreign exchange reserves of the European Central Bank consist of:
- a US dollar portfolio,
- a Japanese yen portfolio,
- gold, and
- the Special Drawing Rights (SDRs) of the International Monetary Fund.
Eesti Pank’s participation in the reserve management of the European Central Bank
In addition to managing its own financial assets, Eesti Pank actively participates in the management of the ECB's reserves.
On the basis of the currency specialisation model, Eesti Pank cooperates with Suomen Pankki (the Bank of Finland) in managing a share of the ECB’s dollar-denominated security portfolio. Eesti Pank cooperates closely with Suomen Pankki in the following fields:
- development of an investment strategy,
- division of operational procedures, and
- analysis of the portfolio yield.
The ECB's share of the reserves is managed according to the investment rules laid down by the European Central Bank.
The euro area’s central banks, including Eesti Pank, are entitled to a share of the European Central Bank’s profit. After the statutorily required amount has been transferred to the ECB’s general reserve fund, the remainder of the earned profit is distributed among national central banks who are shareholders of the European Central Bank, in proportion to their contributions.