Central bankers call for ‘practical action’ to tackle climate risks

By Christopher Jeffery | News | 18 April 2019

The time for talking is over, say NGFS members

François Villeroy de Galhau

Central banks and supervisors need to start right away to actively tackle climate-related risks in the financial system in a practical manner, according to speakers at a Network for Greening the Financial System (NGFS) meeting at the Banque de France on April 17.

The event’s host, Banque de France governor François Villeroy de Galhau, called on financial stability policy-makers around the world to implement “practical” steps to deal with climate risks before it is too late. “It is time to roll up our sleeves,” de Galhau said. The Bank for International Settlements deputy general manager Luiz Pereira da Silva echoed the immediacy of the problem, stressing the urgency by stating that climate change risks are “a clear and present danger”.

Central banks set up the NGFS to investigate climate change issues and promote best practice 16 months ago. At a meeting in Bali in October last year, de Galhau said “climate-related risks are the source of financial risk”. As a result it is “within the mandates of central banks and supervisors to ensure the financial system is resilient to this risk”, he added.

The NGFS released a its first comprehensive report on April 17, which recommended central banks and supervisors implement four specific measures to support the objectives of the Paris Agreement on climate change. These include integrating risks derived from climate change into their macro and micro supervision; adopting sustainability factors in central bank portfolio management; sharing data of relevance to climate risk assessment and making them publicly available in a data repository; and developing in-house capabilities to better understand climate change’s impact on the economy.

It is time to follow the path set by the TCFD on one side, on disclosure, and by the European Commission on the other, on taxonomy, to address all of these issues at the same time

François Villeroy de Galhau, Banque de France

The French central bank governor says the publication of the report brings to an end “season one” of the NGFS’s work and that it is now time to move on to “season two”, which will be packed with new initiatives being acted upon by policy-makers and financial institutions around the world. “Developing practical solutions now tops the agenda of what we will call the NGFS season two.”

De Galhau accepted policy-makers and the finance industry face some big challenges.

For example, he said integrating climate risk into micro-prudential measures is an “ambitious but complex task” – particularly in the areas of disclosures and taxonomies – but he insisted that “progress has been made”.

The challenge is to break a ‘chicken and egg dilemma’ – that is, to bridge climate change risk data gaps there is a need for enhanced disclosures,  but these disclosures in turn need to be built on sound taxonomies that can only be constructed based on robust underlying data.  

“It is time to follow the path set by the TCFD (Task Force on Climate-related Financial Disclosures) on one side, on disclosure, and by the European Commission on the other, on taxonomy, to address all of these issues at the same time.”

De Galhau also pressed for the industry to design a comprehensive set of stress tests.

L to R: Margarita Delgardo and Sabine Lautenschläger

The Banque de France governor also said existing efforts to highlight exposures in the financial system, an area where he said the Netherlands Bank, the Bank of England’s Prudential Regulatory Authority and French regulator APCR, have had some success. De Galhau pointed out that bank exposures to “transition risks” had fallen in the French financial system and now represents roughly 12% of credit risk exposures.

However, the granularity of disclosures is still fragmented in France and, more generally, there are large blind spots in risk management frameworks – for example, finding sufficient pools of reliable data to calibrate risk models in a statistically robust manner that can estimate climate change risks.

“We cannot effectively disclose risks for which there is no data,” said Sonja Gibbs, managing director of the global policy initiatives unit of the Institute of International Finance, a banking association.

Margarita Delgado, a deputy governor at the Bank of Spain, appeared less than sympathetic to the plight of banks and insurance companies. “We have been subject to transition risks for ages. The banks should be used to coping and dealing with risks. They are far smarter, have a lot of money and need to invest in these governance frameworks,” she said.

Sylvie Goulard

Reserve Bank of Australia deputy governor Guy Debelle said establishing a minimum level of disclosure would help. His counterpart at the Banque de France, Sylvie Goulard, added that the development of “concrete tools on stress-testing and disclosure” could be done through an interactive process, where one can “create tools and improve them”.

“The solution is to start doing it,” added Mario Navam, director for horizontal policies in the financial stability, financial services and capital markets union directorate at the European Commission. “We hope under the Finnish presidency by the end of this year to bring a taxonomy home.”

Personal responsibility

Mary Schapiro, the former head of the Securities and Futures Commission and Commodity Futures Trading Commission, who led work by the Financial Stability Board via the TCFD to establish disclosure requirements said the creation of a climate risk management handbook for financial institutions “would be of enormous benefit” and called for greater engagement with company boards.

The RBA’s Debelle said personal responsibility can be a powerful incentive.

He noted that legal opinion has now been issued in Australia highlighting that board directors may have personal exposure should they fail to tackle climate risks.

While Debelle stressed that the legal opinion was not the result of a direct effort by the RBA, the RBA deputy – who has also called for central banks to draw on climate change risks in relation to their core monetary policy mandates – said “it is a particularly effective way to focus the mind”.

From risk to returns

Bank of England governor Mark Carney said “a lot of time” currently is spent “talking about risk”, but he expects a shift “further along the horizon” to “return” – something the private sector would appreciate. Carney said improvements in data would inform better decisions that in future will be subject to highly sophisticated portfolio optimisation techniques using artificial intelligence.

L to R: Mark Carney, François Villeroy de Galhau and Frank Elderson prepare for a fireside chat

As some point in the next 20 years, Carney predicts that portfolio managers will have moved from simple “exclusions strategies” to “tilt strategies”, where investors would invest more in companies with the prospect of making strong progress in the area of climate change.

US absent; no enforcement

Despite its early successes, the NGFS, which has 34 members and five observers, faces challenges itself.

One obvious problem and potential weakness is that is has no enforcement powers. It can only encourage central banks and supervisors to act.

Moreover, while the body had members that oversee two-thirds of the world’s global systemically important banks and insurers and represent countries that produce 44% of global GDP, the US – the world’s largest economy with the deepest capital markets – has yet to join the group.

Penetration is also low among African, Latin American and Asian central banks and supervisors, although the People’s Bank of China does sit on the NGFS’s steering committee. NGFS chair Frank Elderson, a board member at the Netherlands Bank, said the group expects to expand its membership in the months ahead.

Europe needs supervisory standards for climate risks – Lautenschläger

By Central Banking Newsdesk | Speech | 18 April 2019

ECB official says standards should be worked out rapidly in modular form

European policy-makers need to give financial supervisors a common set of standards for assessing banks’ approach to climate and environmental risks, Sabine Lautenschläger said.

“We cannot afford to wait until we have a perfect understanding of all these risks to take action”, the European Central Bank executive board member said on April 17. “Climate change will not adapt to our research schedules.”

Policy-makers could speed up the process of setting new standards by working in a modular way, she told the Network for Greening the Financial System conference in Paris. They could address governance issues before researching more technical topics, Lautenschläger said.

Banks themselves needed to improve the sophistication of their modelling of environmental and climate risks, she argued. Lautenschläger said the ECB was already researching threats to the financial system caused by environmental factors.

She said it had started “to compute the impact of climate-related changes on banks’ capital positions, on other financial intermediaries and, ultimately, on the supply of funds to the economy”. The ECB was also looking at how environmental factors could affect the transmission of monetary policy, Lautenschläger said.

Argentina imposes price controls to tackle hyperinflation

By Victor Mendez-Barreira | News | 18 April 2019

Central bank governor apologises as year-on-year inflation figures rise 54.7%

The Central Bank of Argentina

The Argentine government announced price controls over a wider range of basic products on April 16 after official data said inflation had further increased in March.

The government unveiled an agreement with companies to maintain prices of 60 basic products unchanged until the end of 2019. This includes oil, rice, flour noodles, milk, sugar and beverages. Additionally, “there will be no additional increases in the remainder of the year in electricity for households, transportation and tolls,” said minister of the Treasury Nicolás Dujovne in a press conference.

The government also announced discounts for pensioners and the unemployed, as well as new loans for retirees and for those who receive child benefits.

On April 16, official data said inflation had sharply increased in March. Month on month, the consumer price index rose by 4.7%, according to statistical agency Indec. Last month, the CPI increased year on year by 54.7%.

The high inflation is partly the legacy of the exchange rate crisis the country suffered in 2018. Between April and September, higher interest rates in the US and global volatility triggered sharp capital outflows from emerging countries. Due to their large dependence on external financing, Argentina and Turkey experienced acute currency depreciation. Last year, the peso declined year on year by 50% against the US dollar.

After a few weeks of crisis, in May the government of Mauricio Macri requested the support of the International Monetary Fund.

In June 2018, the fund’s board of directors approved a three-year standby arrangement, giving Argentina access to 35.4 billion in special drawing rights, or approximately $50 billion. And in September, it expanded this support to $57.1 billion.

The Central Bank of Argentina (BCRA) now follows a policy of allowing a semi-floating exchange rate that only allows forex interventions when the peso trades outside a wide range against the dollar. This non-intervention band falls daily to allow a gradual depreciation of the peso

Foreign exchange reform

However, this system has so far failed to deliver lower prices. On April 16, the BCRA governor Guido Sandleris said the March data was “too high a level of inflation. We know it causes great harm to our citizens, especially the most humble.”

Sandleris said the inflation rise recorded over the last three months is due to temporary effects. Analysts consulted by the central bank forecast year-on-year inflation in Argentina will decline to 36% in December 2019, 23% by the end of 2020, and 16% in December 2021, said the governor.

However, Sandleris announced new policy modifications. The BCRA will keep the non-intervention band unchanged until the end of 2019 at 39.75–51.45 pesos to the dollar. And until June 30, if the peso appreciates below 39.75, the central bank won’t intervene in the foreign exchange market buying dollars to make the currency return to the band.

The side effect of this measure “raises the risk that the peso becomes overvalued”, says Edward Glossop, Latin America economist at London-based consultancy Capital Economics. “Price controls, combined with efforts to keep the peso more stable, suggests that policy-makers are panicking and starting to resort to old habits to tame inflation.”

Politicians pressured Sarb to help allegedly corrupt figures – governor

By Central Banking Newsdesk | News | 18 April 2019

South African central bank was told to give banking licence to Gupta family – Kganygago

The Governor of the South African Reserve Bank (Sarb) has said he was put under pressure by the country’s government to give a banking licence to businessmen accused of large-scale corruption.

Lesetja Kganyago said he was asked to take various steps to benefit the Gupta family, in a speech on April 15. The Gupta family has been accused of corruption with former president Jacob Zuma.

Kganyago said that when allegations of corruption started to grow, “commercial banks became unwilling to handle their accounts, for fear of violating laws against facilitating money laundering”. He said government figures was pressured banks to service the family’s business.

When that failed, he said, the senior politicians put pressure on the Sarb to provide the family with a banking licence. Sarb was then threatened with being stripped of its bank licensing powers. “We were using our independence to uphold a law against dirty money flows, and that made us enemies,” he said.

The Guptas are currently involved in various corruption scandals South Africa. There have been frequent claims that they controlled hiring and firing of cabinet ministers, as well as public money being used to pay for a family wedding.

South African president Cyril Ramaphosa, who succeeded Zuma as leader of the governing African National Congress as a result of the scandal, ordered a judicial inquiry to  investigate the corruption allegations against the Guptas.

NY Fed official sketches key factors for balance sheet plans

By Central Banking Newsdesk | News | 18 April 2019

Fed’s nominal securities purchases may be higher than before crisis, official says

New York Fed

The Federal Reserve may buy more government securities in nominal terms than it did before the 2008 financial crisis, according to the head of the New York Fed’s market operations.

When the Fed resumes purchasing securities, the purchases will have to be larger in nominal terms to accommodate for the faster growth in non-reserve liabilities, Logan said on April 17. These future securities purchases “will have the same purpose as they did prior to the financial crisis”, she said.

The Fed’s purchases will need to match the faster growth in its non-reserve liabilities, Logan said in a speech in New York. They will also have to provide a buffer against fluctuations in the financial sector’s demand for Fed reserves, she said.

Analysing the demand for reserves will be a “continual process” for the Fed, said Logan.  

Earlier this year, the Fed announced that in September it intends to stop replacing matured securities on its balance sheet. It also said it will be implementing monetary policy via a floor system, where it targets a federal funds rate using the interest it pays on reserves and reserve repurchase operations.

From September, Logan said the Fed will hold the size of the balance sheet constant for some time, but change its composition. It will allow reserves to be gradually replaced by the growth in non-reserve liabilities.

“At some point, the FOMC [Federal Open Market Committee] will decide that the system has reached a level of reserves consistent with efficient and effective implementation,” Logan said. “The behaviour of money markets with this lower – albeit still ample – level of reserves will feed back into the [New York Fed open market] desk’s thinking about the design of operations.”

Beyond this point, the Fed will resume purchasing government securities to keep its holding of them constant as some instruments mature. It will do this at a scale consistent with the higher growth in non-reserve liabilities, such as currency in circulation, Logan said. For example, she said the currency in circulation increased by almost $100 billion in 2018, compared with an average of $40 billion a year in the early 2000s. 

Managing the buffer

The Fed’s purchases could also be structured to supply a buffer of reserves to offset changes in demand, Logan said.

“A buffer of reserves executed through Treasury purchases would diminish the need for the [New York Fed’s open market] desk to conduct frequent, sizable repo operations, which might be difficult to implement given reduced elasticity of primary dealer balance sheets for tri-party repo in the post-crisis era,” she said.

The buffer would also cushion changes in the Treasury general account at the Fed, or TGA, Logan said. For example, when the US Treasury collects tax receipts, money is withdrawn from a private bank account that forms part of the bank’s reserve holdings. “So, when the TGA increases – and assuming there are no other changes on the Federal Reserve’s balance sheet – this corresponds to a decrease in the level of reserves,” Logan said.

“These changes have grown since the crisis and last year were as large as $100 billion,” Logan said. “Managing a buffer of reserves above the banking system’s demand for reserves would help absorb these fluctuations.”

Even with this approach, Logan said, there still may be times which unanticipated changes in the demand for reserves might warrant repo operations. This will be necessary to ensure the level of reserves in the system is sufficient to keep the effective Federal funds rate in the target range, she said.

A ‘continual process’

The factors that determine the level of demand for reserves are “complex and may change over time”, Logan said. This means the Fed will have to keep on re-assessing that demand, she said.

For instance, surveys conducted by the New York Fed in September and February found internal liquidity stress testing and meeting intraday payments were “important or very important” drivers for individual banks. It also found that meeting deposit outflows were significantly more important to domestic banks than US branches of foreign banks.

Logan said there was “considerable variation” in the survey results, signalling a wide range of reserve management strategies among banks. “The diversity of drivers also highlights how demand for reserves could change if banks move from one strategy to another or refine an existing one over time,” she said.

The New York Fed estimates the banking system’s current demand for reserves is between $800 billion and $900 billion. And the lowest comfortable levels of reserves (LCLoR) – level before banks take active steps to maintain or increase their reserve balance – is estimated to be $617 billion. This is an estimate of the minimum amount of reserves the central bank needs to supply to remain in the floor system.

There are reasons, however, why the actual demand for reserves are uncertain and changeable over time, Logan said. Because of this, assessing the level will be a “continual process” for the Fed.

“An individual bank’s demand curve could change over time, both for reasons specific to the bank and because of changes in the economic or market environment,” she said. The system’s demand could also be higher than the sum of each bank’s individual demand if reserves are not distributed efficiently, Logan added.

“For example, banks now suggest that they face higher balance sheet costs to lend in federal funds, making it possible that this market would not be as efficient at redistributing reserves late in the day as it was prior to the crisis,” Logan said.

“Prior to the crisis, the federal funds market was liquid until late in the day,” she noted. “Banks could experience unanticipated late-day outflows and still be confident in their ability to borrow from other banks holding excess reserves.” But since the crisis, Logan said, “there is little late-day activity in the federal funds market”.

This might not change, she said. “As reserves decline and there is greater need to redistribute reserves, it is unclear if this activity will return as the opportunity cost of holding reserves is now lower. Bank lenders have largely left the federal funds market and today almost all lending is done by the Federal Home Loan Banks.”

Logan said New York Fed surveys had found that “many banks have indicated that rates would need to be well above IOER [interest on excess reserves] before the economics would be attractive enough to offset balance sheet costs that lending in the federal funds market incurs”.

Equity market uncertainty can reduce real GDP – researcher

By Central Banking Newsdesk | Research | 18 April 2019

Equity market volatility in Q4 2018 could reduce policy rate path by 50bp, says researcher

A temporary increase in equity market uncertainty could have persistent effects on the economy, a researcher from the US’s Federal Reserve Bank of Kansas City says in an economic letter.

Using historical data on equity market volatility, Brent Bundick estimates the longer-term effects of the increased uncertainty in US equity markets seen in the fourth quarter of last year. He uses the Chicago Board Options Exchange Volatility Index (Vix) as a measure of uncertainty.

During the fourth quarter of 2018, Vix reached 21, above the longer-run historical average of 19, Bundick says. He finds that a temporary increase in uncertainty produces a significant decline on real GDP and a modest fall in inflation over a two year horizon.

“The rise in uncertainty about the future leads households and firms to cut back their spending, causing about a 30 basis point drop in GDP for about two years after the shock,” he says. “This decline in demand, in turn, puts slight downward pressure on consumer prices.”

On average, he says, the path of future policy rates could be roughly 50bp lower two years after the initial shock.

US imposes sanctions on Venezuelan central bank

By Central Banking Newsdesk | News | 18 April 2019

Trump administration attempts to close one of Maduro regime’s last sources of external financing

A policeman watches protesters in Maracaibo.

The US Treasury imposed sanctions on the Central Bank of Venezuela on April 17, it announced.

The Treasury’s office of foreign assets control (Ofac) added the central bank and its director, Iliana Josefa Ruzza Terán, to the list of Venezuelan organisations and people under sanctions in January.

As a result, “all property and interests in property of this entity and individual (…) that are in the United States or in the possession or control of US persons are blocked and must be reported to Ofac,” the Treasury said. Nicolás Maduro’s regime is increasingly unable to obtain hard currency and has been selling the central bank’s gold reserves.

The sanctions also forbid all transactions by US citizens, or within the US, that involve any property or interests in property of the central bank or Ruzza Terán. These measures aim to prevent the regime from accessing dollar-denominated assets.  

“Treasury is designating the Central Bank of Venezuela to prevent it from being used as a tool of the illegitimate Maduro regime, which continues to plunder Venezuelan assets and exploit government institutions to enrich corrupt insiders,” said Treasury secretary Steven Mnuchin.

The US no longer recognises Maduro as the legitimate president of Venezuela. Donald Trump’s administration accuses the regime of manipulating the result of the 2018 presidential elections.

In January, it recognised the president of the national assembly Juan Guaidó as the country’s president. Most major Latin American and European countries now recognise Guaidó as the Venezuelan president.

Due to the sanctions, Maduro’s left-wing regime cannot sell oil to the US, the country’s main source of hard currency. This forces the government to resort to extreme measures to access dollars in order to finance basic imports. According to official data, international reserves stood at $8.6 billion on April 15, a drastic fall from their level of $30.3 billion in January 2011.

The regime has resorted to selling  the Central Bank of Venezuela’s gold reserves. International and local news organisations reported the government has removed gold from the central bank on several occasions in 2019.

Earlier this month, a government source told Reuters that the Maduro regime has sold 30 tonnes of gold this year. According to official data, the central bank held 147 tonnes of gold at the end of 2018. If Maduro’s regime continues at this rate, it would run out of gold in less than a year.

Source of international loans

The central bank has been key in the regime’s efforts to access hard currency because it could secure loans in dollars from international organisations without the consent of the opposition-controlled legislature. In December 2018, it obtained a $500 million loan from the Latin American Development Bank (Caf).

The loan has “the objective of mitigating liquidity risks and providing macroeconomic support”, said the Caf. The Caracas-based Caf was created in 1970 and includes 19 countries, 17 in Latin America and the Caribbean, plus Spain and Portugal. It also includes 13 private banks in the region.

Its mission is promoting “a model of sustainable development, through credit operations, non-reimbursable resources and support in the technical and financial structuring of projects of the public and private sectors of Latin America”.

Bundesbank official calls for pan-European mobile payments champion

By Central Banking Newsdesk | Speech | 18 April 2019

Board member hopes Europe can compete with US and China in fintech

Europe’s banking sector should create a recognisable “payments solution” to compete with the offerings from US and Chinese tech giants, a Deutsche Bundesbank board member said.  

In an interview on April 4, Burkhard Balz said he feared a takeover of payment systems in Europe by US and Chinese companies. While many payment systems are European, such as Revolut and Wirecard, they are fractured between countries and sectors, Balz said. In comparison, companies such as PayPal and Alibaba are far larger and could easily come to dominate the European market.

Balz proposed that the core markets of Germany, France, Spain and Italy “bundle their forces” to enable Europe to “create its own brand” and compete with global rivals. “Here in Europe, we need to prevent a situation from arising in which American and Chinese payment systems are all we have left to choose between,” Balz said.

The idea of developing a pan-European payment scheme capable of stretching over multiple sectors has also been suggested by the European Central Bank.

Balz emphasised that while he saw the need for a European challenger to big payments firms, it was not the place of central banks to pick champions. He stressed he wanted to “preserve diversity in payments” in the face of the growing market power of US and Chinese companies.

Suriname's president replaces fired governor

By Rachael King | News | 18 April 2019

New governor vows to not bow to political pressure and finance public spending

Suriname’s president appointed a new governor to the South American country’s central bank, shortly after he fired Glenn Gersie from the role, reportedly for political reasons.

Robert van Trikt became governor of the Central Bank of Suriname on March 1 after Gersie was dismissed by president Desi Bouterse in February 2019.

Gersie reportedly refused to finance government spending ahead of the May 2020 elections. One of the new governor’s first acts was to pledge to keep central bank financing of the government within the limits set by the law.

Gersie had served three years in the role and pursued a very tight monetary policy. His tenure saw inflation fall drastically from the very high levels he inherited.

The president also appointed two new officials to senior posts at the bank.

During remarks to officials on March 16, van Trikt took the opportunity to stress the central bank would continue to act within legal boundaries under his leadership. The central bank would not loan the government more than 10% of the estimated revenue of the government as budgeted for the current fiscal year, he said.

“In my view, the development of domestic financial markets is urgently required so that the state can finance part of its budget deficit in a responsible manner,” he added.

Van Trikt said one of his key concerns was to ensure the central bank improves its anti-money laundering measures. This has emerged as a “serious” problem for Caribbean and Central American nations, he said.

Suriname needs to demonstrate it is “taking concrete steps” to combat money laundering and terrorism financing, van Trikt added. “We will have to think about how we handle our payment transactions at home and abroad,” he said.

Plans are already under way to update and tighten various financial laws and regulations, the governor said.

Amendments are being made to the Banking Act. Van Trikt also noted there were plans to introduce an Electronic Payments Act and complete changes to the Insurance Supervision Act.

The new governor also looks set to try and push consumers towards new electronic means of payment. “In 2019, Suriname will have to realise that we have to let go of our cash culture and more and more have to choose to pay by bank transfer,” van Trikt said.

In 2015, the central bank launched the Suriname National Electronic Payments System – an interbank payments system that allows banks to carry out daily clearing through the central bank independently.

“The Central Bank of Suriname faces enormous challenges,” van Trikt said. “I feel enormously strengthened and take on this challenge with complete confidence, together with my management and all employees of the bank.”

Van Trikt comes from an accountancy background and has worked at a number of large local firms including Limebridge Financial and Advisory Services and Orion Assurance, where he was a partner. He is also the chairman of the country’s College of Accountancy.

New appointments

William Orie and Michael Soekhnandan have also been appointed to senior roles within the central bank.

Orie has been handed responsibility for the monetary and economic affairs division, while Soekhnandan will take over as director of banking and banking affairs. It is not clear how long these roles had been unoccupied. Both will automatically be appointed to the bank’s board.

The central bank currently has the mandate to promote the stability of the country’s currency – the Surinamese dollar. In addition, the institution must help foster the banking sector and credit system. The central bank is the country’s main financial supervisor.

Unlike other central banks, the Central Bank of Suriname also has a mandate to promote the balanced socio-economic development of the country. 

Legacy left behind

Gersie was appointed governor by president Bouterse in February 2016. During his time as governor, he implemented a tight monetary policy strategy, increasing interest rates from 12.5% to 25%, as the country struggled to deal with hyperinflation.

Suriname’s exchange rate stabilised and year-on-year inflation declined from a peak of close to 80% in 2016 to 9.2% in December 2017, says the International Monetary Fund.

Provisional official data placed inflation at 4.3% in February 2019. But Suriname’s economy still suffers other imbalances.

In 2018, the budget deficit reached 7.3% of GDP. “The public financial management framework remains weak, although the authorities are taking steps to strengthen it,” said the IMF in its article IV consultation on Suriname in December 2018.

“The monetary framework lacks standard instruments. Despite improvements since 2016, pockets of vulnerability remain in the banking sector,” it adds.

The IFF China Report 2019: The Belt and Road Initiative

By Alex Hurrell | Feature | 18 April 2019

Over the past five years, China has invested more than $70 billion in Belt and Road Initiative (BRI) countries, of which there are now in excess of 100. Leading Chinese and international policy-makers explain how BRI efforts are progressing. This section includes the annual survey of central banks in jurisdictions participating in the BRI – all respondents to which agreed the initiative is an important measure in promoting globalisation.