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49807-01 - Lecture: Public Sector Investment Management - Foreign Reserve Management at Central Banks (3 CP)
| Semester | fall semester 2026 |
| Course frequency | Every fall sem. |
| Lecturers | Jacob Bjorheim (jacob.bjorheim@unibas.ch, Assessor) |
| Content | The public sector (Central Banks, Sovereign Wealth Funds, etc.) holds large portfolios of assets and is an active participant in global financial markets. The management of such investment portfolios involves decisions not only about their purpose, size and funding but also about which investment strategies should be applied. This one-semester course focus on the practical side of managing investment portfolios from a public sector point of view. We discuss the framework and policy set-up for such portfolios and in particular focus on how Central Banks manages their “Foreign Currency Reserves” in a balance sheet context. This activity has evolved rapidly since the turn of the millennium not only because of the accumulation of reserves (size) and the asset composition (asset allocation), but also as a direct outcome of the Global Financial Crisis (2007-2008). |
| Learning objectives | The purpose of this weekly course is to extend a student’s knowledge beyond traditional investment/portfolio/asset management practices towards the investment management function of the public sector and in particular that of central banks. With recent examples and case studies, the course enables students to understand how the public sector currently invests its portfolios. |
| Bibliography | Course material will be provided through the ADAM website. A general reading reference is (1) the publication by the Bank for International Settlements (BIS): “FX reserve management: trends and challenges”, and (2) specific, country relevant practices such as the publication: “Management of Foreign Reserves at the Central bank of Chile". In addition, we will read papers published in leading economic journals highlighting classic and contemporary thinking. Finally, since the topic of this course has a high degree of actuality and practicality, we will discuss, over the course of the semester, comments that we collect, ad-hoc, from newspapers, journals, blogs and central banks comments. |
| Weblink | Weblink |
| Admission requirements | Students will benefit from having participated in or having passed exams related to Economics and Finance (for example “Einführung in die Finanzmärkte”, "Intermediate Micro/Macroeconomics", “Finanzmarkttheorie 1/2”, Financial Markets Theory). |
| Course application | Registration: Please enroll in the Online Services (services.unibas.ch); Eucor-Students and mobility students of other Swiss Universities or the FHNW first have to register at the University of Basel BEFORE the start of the course and receive their login data by post (e-mail address of the University of Basel). Processing time up to a week! Detailed information can be found here: https://www.unibas.ch/de/Studium/Mobilitaet.html After successful registration you can enroll for the course in the Online Services (services.unibas.ch). Applies to everyone: Enrolment = Registration for the course and the exam! |
| Language of instruction | English |
| Use of digital media | No specific media used |
| Course auditors welcome |
| Interval | Weekday | Time | Room |
|---|---|---|---|
| wöchentlich | Tuesday | 14.15-16.00 | Kollegienhaus, Seminarraum 104 |
Dates
| Date | Time | Room |
|---|---|---|
| Tuesday 15.09.2026 | 14.15-16.00 | Kollegienhaus, Seminarraum 104 |
| Tuesday 22.09.2026 | 14.15-16.00 | Kollegienhaus, Seminarraum 104 |
| Tuesday 29.09.2026 | 14.15-16.00 | Kollegienhaus, Seminarraum 104 |
| Tuesday 06.10.2026 | 14.15-16.00 | Kollegienhaus, Seminarraum 104 |
| Tuesday 13.10.2026 | 14.15-16.00 | Kollegienhaus, Seminarraum 104 |
| Tuesday 20.10.2026 | 14.15-16.00 | Kollegienhaus, Seminarraum 104 |
| Tuesday 27.10.2026 | 14.15-16.00 | Kollegienhaus, Seminarraum 104 |
| Tuesday 03.11.2026 | 14.15-16.00 | Kollegienhaus, Seminarraum 104 |
| Tuesday 10.11.2026 | 14.15-16.00 | Kollegienhaus, Seminarraum 104 |
| Tuesday 17.11.2026 | 14.15-16.00 | Kollegienhaus, Seminarraum 104 |
| Tuesday 24.11.2026 | 14.15-16.00 | Kollegienhaus, Seminarraum 104 |
| Tuesday 01.12.2026 | 14.15-16.00 | Kollegienhaus, Seminarraum 104 |
| Tuesday 08.12.2026 | 14.15-16.00 | Kollegienhaus, Seminarraum 104 |
| Modules |
Modul: Wahlbereich in Wirtschaftswissenschaften (Bachelor's degree subject: Business and Economics) Wahlbereich innerfakultär: Zusätzliches Lehrangebot (Bachelor's Studies: Business and Economics) |
| Assessment format | record of achievement |
| Assessment details | Every weekly session has a different topic. During the first hour, the lecturer will introduce the topic before one or more students are given the opportunity to present an academic paper that has been chosen for the session. The papers we read will be posted in ADAM ahead of semester-begin and the students will be asked to select which paper they want to present in class. The presentation will be up to 15 minutes leaving time for debate. It is expected that all students have read the weekly paper and actively participate in the discussion. Students will also write a one-hour exam (graded) in the final week of the course. Written exam: date tdb |
| Assessment registration/deregistration | Reg.: course registration, dereg: cancel course registration |
| Repeat examination | no repeat examination |
| Scale | 1-6 0,1 |
| Repeated registration | as often as necessary |
| Responsible faculty | Faculty of Business and Economics , studiendekanat-wwz@unibas.ch |
| Offered by | Faculty of Business and Economics |