The Bank’s investment portfolio is invested in a wide range of instruments — deposits, other money market instruments, government bonds and other high-quality fixed income securities. On a day-to-day basis, this means that we must maintain a number of account relationships with correspondents and custodians outside the State. Settlement of all investment asset transactions takes place over these accounts following the bilateral exchange of trade confirmations with the counterparty with whom the trade was dealt.
Under the terms of Articles 9.2 and 12.1 of the ESCB Statute, the ECB considers that euro-area NCBs should manage the foreign reserve assets that were transferred to it as agents for the ECB. Settlement of these foreign reserve asset transactions are performed by us in accordance with Guidelines published from time to time by the ECB.