Challenges facing reserves managers With that contextual backdrop, and before moving on to discuss some of the challenges faced by reserves managers, it is worth reflecting on one of the consequences of the global financial crisis that we are still grappling with today. This is the deterioration in the credit quality of the reserve currencies.
Since 2008, using Standard & Poor’s ratings, we have seen the Japanese government debt being downgraded from AA to A+ and the US drop from AAA to AA+.