International Reserve Trends in the South Caucasus and Central Asia Region / Holger Floerkemeier, Mariusz Sumlinski.

Format:

Book

Government document

Author/Creator:

Floerkemeier, Holger.

Contributor:

Sumlinski, Mariusz.

Series:

IMF Working Papers; Working Paper ; No. 2008/041

IMF Working Papers

Language:

English

Subjects (All):

Foreign exchange--Econometric models.

Foreign exchange.

Finance--Econometric models.

Finance.

Caucasus--Economic conditions.

Caucasus.

Asia, Central--Economic conditions.

Asia, Central.

Physical Description:

1 online resource (29 p.)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2008.

Language Note:

English

Summary:

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.

Contents:

Contents; I. Introduction; II. Reserves as Self-Insurance: Sources of External Vulnerability; III. Traditional Measures of Reserve Adequacy; Figures; 1. CCA-6. Measures of Reserve Adequacy, 1995-2007; 2. Measures of Reserve Adequacy 2005-International Comparison; IV. Optimal Reserves; A. The model; B. Calibration; Tables; 1. Calibration Parameters; C. Baseline results; 2. Implicit Parameter Values Yielding Optimality of End-2006 Reserves; 3. Simulation Results; Box; 1. Kazakhstan: Impact of the 2007 Global Credit Squeeze; D. Sensitivity analysis

3. Sensitivity of Simulation Results: Average Impact of Parameter Changes4. Sensitivity of Simulation Results: Country- and Time Effects; E. Model extensions; V. Summary and Concluding Remarks; 5: Imports-to-GDP Ratios in Transition Countries; Appendix 1: Recent Empirical Work on International Reserve Holdings; Appendix 2: Sensititvity of Simulation Results; References

Notes:

Description based upon print version of record.

Includes bibliographical references.

Description based on online resource; title from PDF cover (ebrary, viewed July 6, 2015).

ISBN:

9786613827326

9781462386079

1462386075

9781452750101

1452750106

9781283514873

1283514877

9781451913569

1451913567