According to Global Debt Report 2025, what was the share of central bank holdings of domestic sovereign bonds in OECD countries in 2024?

The correct answer is 0.19.

Key Points

• According to the Global Debt Report 2025, the share of central bank holdings of domestic sovereign bonds in OECD countries in 2024 was 19% (0.19).
• OECD countries represent economically advanced nations, including key players such as the US, UK, Japan, and European Union member states.
• The significant holding of domestic sovereign bonds by central banks highlights their role in stabilizing economies and managing fiscal policies.
• The increase in central bank holdings has been influenced by quantitative easing policies implemented during economic downturns.
• This share underscores the growing reliance on central banks to provide liquidity and maintain economic stability.

Additional Information

• OECD (Organisation for Economic Co-operation and Development):
  • An intergovernmental organization established in 1961 to promote economic progress and global trade.
  • It consists of 38 member countries, mostly developed economies.
  • OECD provides a platform for economic analysis and policy recommendations.
• Domestic Sovereign Bonds:
  • Sovereign bonds are debt securities issued by governments to finance their expenditures.
  • Domestic sovereign bonds are denominated in the issuing country’s local currency.
  • Central banks often purchase these bonds as part of monetary policy measures.
• Quantitative Easing (QE):
  • A monetary policy tool used by central banks to inject liquidity into the economy.
  • Involves large-scale purchases of government bonds and other securities.
  • Aimed at reducing interest rates and stimulating economic growth.
• Economic Stability and Liquidity Management:
  • Central banks play a key role in maintaining economic stability by controlling inflation and managing liquidity.
  • Purchasing sovereign bonds is one method to ensure adequate liquidity in financial markets.