Efficient management of foreign exchange reserves has become vital for maintaining sound perceptions of central bank credibility.
Undoubtedly, a  1  Jukka Pihlman and Han van der Hoorn (2010), Procyclicality in Central Bank Reserve Management: Evidence from the Crisis, IMF Working Paper  BIS central bankers’ speeches  3  loss of reputation through bad governance could undermine the ability of a central bank to perform its primary tasks of ensuring price and financial stability.