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The Central Bank of Malta owns and manages
the country's official reserves which consist of a portfolio
of foreign and domestic financial assets. According to Article
105(2) of the Treaty on European Union, these reserves, along
with those of the
other national central banks and the official reserves of the
European Central Bank, form part of the reserves held by the
Eurosystem.
The Bank’s Investment Policy Committee (IPC) is responsible
for setting the Bank’s investment overall strategy and
monitoring the performance of the investment portfolio. Prior
to the adoption of the euro, the primary purpose of the reserves
was to safeguard the value of the domestic currency and to
support the exchange rate peg. Accordingly, the overriding
objective of reserve management used to be to ensure appropriate
liquidity and and to preserve the value of the investment portfolio.
Following the Bank’s membership in the Eurosystem, the
main investment objective of the Bank is to maximize the return
on the portfolio within the security and liquidity parameters
approved by the Board and the IPC.
The Bank also manages a portfolio of foreign reserves on behalf
of the European Central Bank in conjunction with another Eurosystem
member.
Malti | 
