, speech delivered on 30 june 2020. 18. king, m., monetary policy : theory in practice, speech delivered on 7 january 2000. a clash of objectives could arise as well if, say, the central bank attempted to use its monetary policy asset purchase programmes to pursue environmental policy objectives, as these programmes need to be scaled back as soon as warranted to ensure price stability. however, greening the economy is a process that needs to continue. ultimately, monetary policy is not a structural policy instrument : it is cyclical in nature – its effects are supposed to balance each other out over the long run through the interplay of monetary policy loosening and tightening. that said, i do believe that central banks can step up their game to protect the climate without running the risk of overstretching their mandate. it all begins with the question of what role climate change and climate policy can play in fulfilling our mandate. one thing is clear : we need to have a comprehensive understanding of the impacts of climate change and climate policy on the economy and financial system if monetary policy is to continue preserving price stability. furthermore, climate change and climate policy can give rise to risks that affect not just firms in the real economy but also their lenders in the financial system. in their capacity as banking supervisors and guardians of financial stability, central banks need to ensure that climate - related financial risks are appropriately taken into account as part of risk management. such risks can also have an impact on the central bank balance sheet, which is why our risk management should likewise incorporate climate - related financial risks, and that also means with regard to the securities we purchase for monetary policy purposes. to do this, we need comprehensive and reliable information. when it comes to monetary policy, central banks are within their rights to request better information. i believe that the eurosystem should consider purchasing or accepting as collateral only those securities whose issuers meet certain climate - related reporting requirements. we may also look into using only ratings of agencies that adequately and transparently reflect climate - related financial risks. if this approach should not lead to a compelling solution, i would also be willing to consider other measures to adequately incorporate such risks into our risk management. we could, for example, limit the maturities or the volume of securities from certain issuers in our monetary policy portfolio if required to contain financial risk. taking such a step would not be an about - face, but rather the logical conclusion of the risk - oriented approach that i have been advocating

joachim nagel : launching a trading desk in tokyo welcoming remarks by dr joachim nagel, member of the executive board of the deutsche bundesbank, at the opening of the enlarged office of the deutsche bundesbank in tokyo, tokyo, 6 september 2012. * 1. * * introduction governor shirakawa, vice minister nakao, ladies and gentlemen, i would like to convey my sincerest gratitude to all those who have helped us to establish a trading desk in tokyo, especially the bank of japan. i would also like to thank the ministry of finance and the financial services agency very much for their support. our decision to start trading operations in tokyo has attracted some attention. i think it would therefore be useful to provide you with some background information on this matter. 2. the deutsche bundesbank ’ s foreign reserves as trading operations in tokyo form part of the management of foreign exchange reserves, let me first provide you with some basic information on the bundesbank ’ s foreign reserves. foreign reserves have three main components : foreign exchange, the position with the imf and gold. germany ’ s foreign exchange reserves amount to around eur 31 bn., of which the majority is invested in us dollar, and also a share is invested in japanese yen. for many years, the total volume of the foreign exchange reserves has been kept quite stable. due to the valuation at market prices, the share of gold within the bundesbank ’ s reserves has increased significantly during recent years. the composition of the reserve assets is less the result of a portfolio optimisation strategy than, first and foremost, a response to gold transfers under the bretton woods system and to foreign exchange interventions prior to the launch of european monetary union. the management of the bundesbank ’ s us dollar und japanese yen portfolio is based on the principles of safety, cost efficiency and liquidity. the trading office in tokyo will essentially be responsible for executing purchases and sales of japanese government bonds during tokyo trading hours. the bundesbank ’ s central office in frankfurt will remain responsible for making strategic decisions and coordinating investment activities. 3. on - site reserve management in april 2009 the bundesbank started to use the premises of its representative office in new york to launch a trading desk for reserve management operations in us treasuries and money market instruments such as repos. so why do we also trade outside of frankfurt? trading activities create contacts with market partners and enable bundesbank traders and analysts to increase their knowledge of