On January 14, 2021, Deputy Governor Nguyen Kim Anh of the State Bank of Vietnam (SBV) attended the virtual All Governors' Meeting of the Bank for International Settlements (BIS). Also attending the meeting from the SBV, there were representatives from the Monetary Policy Department, the Foreign Exchange Management, the Monetary Forecasting and Statistics Department, the Central Banking Department and the International Cooperation Department.
The All Governors' Meetings of the BIS take place every two months. At the Meeting this week, the BIS Governors discussed about and adopted the 2020 Annual Report of the Irving Fisher Committee (IFC) on Central Bank Statistics; discussed about the usage of the Execution Algorithms (EA) in the forex transactions, collection, selectivity and processing of data on forex transactions in real time and the results of the emerging trends in the management of the foreign currency reserves.
In 2020, the IFC's activities focused on the following key areas: Big data and analysis, Fintech, Sustainable finance, Overseas statistics, Financial accounts, other international statistics initiatives. In 2021, the IFC would continue to study intensively the above mentioned areas, focusing on data management, including the effects of big data and technological innovations.
Execution Algorithms (EA) are automatic trading programs designed for buying or selling a certain number of shares of a stock or a foreign currency based on a mix of parameters set by the user in order to optimize that trade.
Participants at the All Governors' Meeting of the BIS (screenshot)
Regarding data collection and processing, the BIS Innovation Hub has been implementing a project coded RIO with a view to supporting the central banks to develop the necessary infrastructure and technological applications for monitoring, collecting and processing real-time data on forex transactions. This system would help the central banks improve the quality of their analyses, then issue early warnings and take fast interventions, thereby enhancing the performance of the management and supervision of the forex markets.
Deputy Governor Nguyen Kim Anh attends All Governors' Meeting of the BIS
Surveys on the trends of the investments in foreign currency reserves are conducted every two years by the Banking Department of the BIS in order to understand the key trends of the investments in foreign currency reserves around the world. The BIS 2020 Survey, which received feedbacks from 125 institutions representing over 90% of the foreign currency reserves globally, provides an overall outlook for the developments in the reserve management, including the types of assets and the monetary demands, as well as the priorities for developing the core goals of safety, liquidity and profitability.
Previously, on January 11-12, 2021, the Governors of the central banks of the BIS members also joined a meeting on the side of a World Economic Forum Session and the Meeting of the Central Bank Governors of the Emerging Economies in order to discuss about the negative impacts of the COVID-19 pandemic on households and the monetary policy frameworks in the emerging economies, especially the room for monetary policies in the post-COVID period. The next All Governors' Meeting of the BIS would be held in March, 2021.
Le Hang