A Proposed Model for Evaluating the Performance of Foreign Reserves Management in Central Banks and Other Authorized Entities

Central banks are non-profit public sector institutions, but this does not mean that they do not need to evaluate performance. On the contrary, their performance can be measured by the degree of their effectiveness in achieving their goals, which helps in identifying strengths and weaknesses and improving performance, but it is difficult to evaluate the overall performance of central banks. Because it is linked to many elements that cannot be identified or measured accurately, on the other hand, the tasks of the central bank can be divided based on the main objectives of the central bank, which generally include managing monetary policy, supporting financial stability, achieving financial inclusion, and managing foreign reserves. The research paper will focus on the central bank’s mission in managing foreign reserves by clarifying the basic elements of this process and the proposed indicators that can be used to guide the construction of a model for evaluating the performance of foreign reserves management that includes financial and non-financial indicators.