Central banks, in particular those managing a large pool of assets, need to pay due attention to market conditions  and adopt appropriate trading practices so as to minimise the impact of their trades and avoid generating unintended signalling effects.
With this in mind, for instance, we at the Bank of Italy have been gradually reducing the average size and holding period of our active positions in foreign reserve management, while increasing the frequency of trades. Furthermore, we reinvest large bond redemptions by distributing purchases over an entire trading session.