Investment portfolio

The investment portfolio is mainly placed in the bond markets of leading industrial countries. Upon investing foreign exchange reserves in bonds it is essential to achieve an optimum balance between risk and profitability. The primary risks related to investing foreign exchange reserves are the currency, interest rate, credit and liquidity risk. All these are measured and managed by the optimum diversification of the investment portfolio's structure and the careful selection of instruments as well as transaction partners. For every abovementioned risk there are also general framework rules, which exclude taking risks that are inappropriate for the central bank. Compliance with risk limits is monitored constantly, usually in real-time. A small part of the reserves (ca 0.28%) is also held in gold.