International Reserve Trends in the South Caucasus and Central Asia Region /

In recent years, the South Caucasus and Central Asia countries (CCA-6) have received significant foreign exchange inflows. While a healthy reserve buffer is desirable to selfinsure against external crises, holding international reserves also involves costs. We analyze the adequacy of CCA-6 reserves...

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Detalhes bibliográficos
Autor principal: Floerkemeier, Holger
Outros Autores: Sumlinski, Mariusz
Formato: Periódico
Idioma:English
Publicado em: Washington, D.C. : International Monetary Fund, 2008.
Colecção:IMF Working Papers; Working Paper ; No. 2008/041
Acesso em linha:Full text available on IMF
Descrição
Resumo:In recent years, the South Caucasus and Central Asia countries (CCA-6) have received significant foreign exchange inflows. While a healthy reserve buffer is desirable to selfinsure against external crises, holding international reserves also involves costs. We analyze the adequacy of CCA-6 reserves using widely recognized rules of thumb, and simulate optimal reserve levels applying the Jeanne (2007) model. Both the adequacy measures and the model-based simulations indicate that, with the exception of Tajikistan, CCA-6 reserves had increased to broadly comfortable levels by 2006. More recently, reserve adequacy has been tested in Kazakhstan, which has been affected by the 2007 global liquidity crunch.
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Descrição Física:1 online resource (27 pages)
Formato:Mode of access: Internet
ISSN:1018-5941
Acesso:Electronic access restricted to authorized BRAC University faculty, staff and students