Photo Credit: Hillel Maeir / TPS
Karnit Flug, Governor of the Bank of Israel.

The Bank of Israel has won Central Banking Magazine’s 2017 Reserve Manager of the Year Award.

The decision was made by a panel of former central bank governors from around the world who comprise the magazine’s Editorial Advisory Board and editorial team.


The panel noted that in view of declining returns in sovereign bond markets, the Bank of Israel took steps to improve risk-adjusted returns, by expanding the reserves’ investment to equities and corporate bonds.

The panel said it was particularly impressed by “the carefully managed evolution” of the Bank’s reserves management framework, the “pioneering work its market operations team is conducting” related to sensitivity analysis of the investment portfolios, as well as the Bank’s “in-house development and nurturing of in-house expertise as it has embraced risk-based diversification”.

“The Bank of Israel has emerged as a pioneer when it comes to seeking out improved risk-adjusted returns from its growing foreign exchange reserves,” said Central Banking editor in chief Christopher Jeffrey, who served as chairman of the Awards Committee.

“The market operations team, led by Andrew Abir, is also keenly aware of the risks involved, given the long-anticipated shift in the interest rate cycle, political events and the unpredictable nature of emergencies.”

“We are honored to receive this award and I would like to thank the Central Banking Awards Committee for having chosen us, said Dr. Karnit Flug, Governor of the Bank of Israel.

“We are very proud of the recognition of all the hard work that has been done by our Market Operations Department over the last few years. The challenges for reserves management have dramatically increased.”

Central Banking magazine, founded in 1990, is published in London. It is the only independent magazine dealing with central banks. It has subscribers in 140 countries, including most central banks. This year’s prize follows the magazine’s granting in 2016 of the “Transparency Award” to the Bank of Israel. The magazine grants several awards each year in the area of central banking.