In recent years, central banks around the world have shown an increasing interest in investing their international reserves in assets denominated in a wider array of currencies. This is explained by a number of reasons, including a more active search for yield in a low interest rate environment and diversification from a risk management perspective.
The Governing Council will regularly reassess the pace of the APP portfolio reduction to ensure it remains consistent with the overall monetary policy strategy and stance, to preserve market functioning, and to maintain firm control over short-term money market conditions.