##ruency of their recommendations with those put forward by public authorities. second, enhancing transparency and valuation practices is crucial for restoring confidence in financial markets. progress has already been marked in this respect, as many financial institutions have improved disclosure in their interim financial reporting for the second quarter of 2008, especially in relation to their risk exposures, valuation methods and off - balance sheet entities. relevant guidance has been provided and is also being further developed by the basel committee on banking supervision and public sector initiatives, such as the european and the american securitisation fora. in addition, the international accounting standards board is accelerating its work to enhance accounting and disclosure standards of off - balance sheet entities and to develop guidance for valuation in markets that are no longer active. i take this opportunity to welcome the amendments adopted by the international accounting standards board and implemented in the eu by the european commission earlier this month. these amendments introduce the possibility to reclassify assets in line with what is already permitted by the us gaap and require additional disclosure requirements linked to these reclassifications in order to ensure full transparency. the ecb has been championing enhanced transparency and valuation practices as well as consistency at the international level and will continue following all relevant developments given the importance of accounting standards to financial stability. third, reviewing regulation on capital adequacy to assess the extent to which the current regulatory framework encourages procyclical behaviour by financial institutions is pivotal in promoting financial stability. in the short term, regulators have agreed to avoid measures that will in effect tighten capital requirements, impinging on the financial standing of banks and negatively impacting the supply of credit and the economy as a whole. at the same time, work has been initiated to investigate the impact of factors potentially contributing to procyclicality from a longer - term perspective. finally, i would like to discuss the measures aiming at enhancing the cooperation among central banks, supervisors and regulators in the current context. on the crisis prevention side, it has been agreed that there is a need to reinforce multilateral surveillance. to this end, the fsf and the imf will intensify their cooperation with a view to enhancing the assessment of financial stability risks on a global scale. in the eu context, the same is envisaged for the committee of european banking supervisors and the banking supervision committee of the european system of central banks. these initiatives should also be reflected at national level. to this end, strengthening cooperation and exchange of information between central banks and supervisory

rate level, should disturb pricing on the financial markets as little as possible. the state is the riksbank's principal. it would therefore seem inappropriate to me if the riksbank chose government bonds to attempt to give the government incentive to work towards a more sustainable development. i therefore do not think that the riksbank should treat green swedish government bonds any differently from other swedish government bonds. 10 the conditions for active climate consideration are slightly better in our work with the foreign exchange reserves. to ensure that the foreign exchange reserves fulfil their purpose, they need to consist of assets that can be rapidly converted to money even when the markets are not functioning properly. our assessment is that the foreign exchange reserves best correspond to this need if they consist of 75 per cent us government bonds, 20 per cent german and 5 per cent british, danish and norwegian government bonds. but to attain a higher yield and reduce the financial risk, the executive board has decided that a limited part of the foreign exchange reserves can be invested in other assets. the condition is that these are assets with a high credit rating and good liquidity, issued by central governments, provinces or intergovernmental organisations. 11 9 in addition, the riksbank owns 125. 7 metric tons of gold ( worth almost sek 60 billion ). 10 the government has given the swedish national debt office the task of issuing green bonds. see the swedish ministry of finance ( 2019 ) and sou ( 2017 : 115 ). our regulations also allow investments in us agencies and in bonds issued by local authorities or state - guaranteed organisations. 5 the riksbank gives consideration to the climate in its investments last year we stated in our risk and investment policy that we would also give consideration to sustainability aspects when choosing assets. the riksbank has not yet fully decided how sustainability aspects should be taken into consideration in the investment decisions. there are two main lines to choose between : either we choose which assets or which issuers we want to have in the foreign exchange reserves. the choice between assets would mean trying to invest some of the foreign exchange reserves in particularly climate - friendly assets, such as green bonds. i have doubts about this type of strategy, primarily as our investments are largely in bonds issued by central and federal governments. it is difficult to earmark money for special projects in government budgets. the riksbank rejects issuers with a large climate footprint i believe it is better to instead focus on the issuers, and to make an overall