The implications of the euro area membership for foreign reserve management by national central banks (NCBs) were discussed at length during a two-day workshop.

The Central Bank of Malta hosted the workshop, in conjunction with the European Central Bank, in view of the forthcoming accession of new EU member states, including Malta, to the euro area.

The workshop included participants from all the NCBs of the new member states. It was opened by the Central Bank Governor Michael Bonello and chaired by Werner Studener, ECB deputy director general market operations.

Speakers from the ECB and from the euro area NCBs addressed various aspects of foreign reserve management, including the ECB foreign reserve management framework; how euro area NCBs manage reserves on behalf of the ECB; the risk management aspect and back-office related issues.

The workshop was organised by the Central Bank of Malta as part of its commitments as a member of the European System of Central Banks, which include the hosting of ESCB committees, working groups and task forces.