What we can learn from Singapore @MAS_sg during its early period from a systemic risk management perspective->
1. Building of forex reserves under Dr Goh after Independence
2. Accumulation and Placement of the Currency Reserves
3. Diversification of the reserves
A case study.
I wish countries, which are today struggling to mobilize hard reserve currency, should make the example of Singapore under Dr Goh a part of their compulsory reading curriculum.
If a tiny city-state can do it, others can follow a good example too.
#SriLankaCrisis #Pakistan
Yes, Encashable Precious Metals, Commodities and other Fossil Fuel Reserves/Inventory, such as oil/gas, should be added to the FX Reserves.
I believe Forex Reserves Reporting Methodology needs some fine-tuning by @BIS_org
There should be some new International Financial Law or Banking Law, which should clearly lay down the conditions based on which global financial institutions and countries can impound forex reserves of other countries.
This problem started when Ghani was driven out of Kabul.
After Afghanistan lost somewhere around USD$10 billion, the Russian forex reserves worth approx $400 billion were impounded.
Who is next?
Not that I admire what happened in either Kabul or Ukraine.
Some legal explanation is required.

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More from @SAH16928046

Jun 11
Capital controls are coming soon.
Most of the countries are facing balance of payments risk, and some of them are teetering on the brink of default on financial contracts, and Multilateral Loans borrowed in the past, might reduce capital mobility, and some might impound FX A/cs.
The last tweet was about the context of the developing world and some Emerging Markets Economies.
Some people on this forum are talking preposterously about sovereign credit risk and default
That Argentina defaulted nine times, etc
What rudderless intellectualism is this?
If a country defaults, it has the potential to create multiple problems having multifaceted dimensions
Read 5 tweets
Jun 5
How much #Maths is needed in Private Equity (also when compared to Hedge Funds or Investment Banking for example)?
@CAIAAssociation @CAIA_Blog
Private Equity requires a good understanding of Finance and especially sector-specific finance such as Real Estate Finance Investments
In my opinion, the techniques used to model PE transactions have a lot in common with those that are applied to Listed Equity.
It has some maths in it, but nothing out of the world!
Unless you are doing financial risk management assignments, which means you will be applying the standard tools that are used elsewhere, such as #VaR ( translates into ICAR - Invested capital at risk in the PE Industry).
Read 10 tweets
Jun 5
Mostly, Actuarial Science Students and Mathematical Statistics graduates have found refuge in other interdisciplinary professions such as FRM -Financial Risk Management/ Economic Capital Modeling, ERM -Enterprise Risk Management - by doing the CERA offered by @SOActuaries 1/1
Retirement Fund Management, Data Sciences and Machine Learning, Computational Finance, Financial Engineering, Quantitative Trading and Portfolio Management, Health Economics, Operations Research and Industrial Engineering Topics, Financial Regulation of Systemic Risk, etc.
1/2
The Industries of Life and/or General Insurance, are considered to be the largest employers, of actuaries in the financial services industry are no longer relevant. Big 4 hire Actuaries and Statisticians to assist various Machine Learning and Data Science related projects.
1/3
Read 6 tweets
Jun 5
Extremely well-educated people with a scholarly inkling don't do well in the Third World.
Comparatively, professionals with average skill sets do much better in mediocre workplaces, because they communicate in a language which simple-minded colleagues & customers comprehend
I remember working with an office chap who only understood business transactions and outcomes in terms of bookkeeping and accounting entries.
His mind never went beyond management or financial accounting.
No lateral thinking at all!
He was later sacked by the Shareholders.
The biggest challenge comes when you are asked to do your job and also explain things to others to prove you are right to justify your worth.
This kind of job is the most stressful.
Teaching and training colleagues once in a while it is fine, but, 5 days a week, is not helpful.
Read 4 tweets
Jun 4
Keep an eye on the traded CDS quotations.
Many countries are inching closer to Sovereign Default on financial obligations.
Global Sovereign Credit Risk is entering into a new phase, one which will provide new opportunities for Eurobond, distressed assets and hedge fund managers
Countries that misplay their growth targets suffer in the long run.
High economic growth is not a solution for every nation, as most of the countries in the developing world run out of forex reserves.
It can very well become a major source of instability after some time.
#Minsky
Japan and Spain are well remembered for their economic growth rates from the 1950s to the 1970s.
Spain was booming under General Franco, and so was Japan.
Where do these two countries stand now?
Macroeconomic Models must adjust to the empirical and theoretical ground realities,
Read 11 tweets
May 26
Climate Economics and Finance are completely ignored by the private sector based financial sector and other economic sector participants.
The climate-related financial disclosures aka #TFCDs and other nudges, being promoted by different global financial institutions and economic blocs, have not yet reached many countries.
Most banks and other firms are now investing in climate-related risk modelling and stress testing.
Central Banks in the Third World should ask licensed banks to do the same to promote a Green, Clean, and Care Economy.
Read 11 tweets

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