Several committees have suggested that the mandate of the Reserve Bank should be narrowed on the argument that its currently broad mandate is diluting its focus on price stability – the core concern of monetary policy.
Given the diversification benefits of the renminbi denominated assets, we consider this to be a logical next step in terms of our engagement in China. Especially seeing that the market is maturing, and that the volatility in market interest rates has been decreasing over the recent years. Going forward, we do see a potential of increasing our stake in this geographical region further.