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International Reserve Adequacy in Central America

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  • Mrs. Kristin Magnusson Bernard

Abstract

Countries’ absolute and relative international reserves adequacy has recently attracted considerable attention. The analysis has however concentrated on the largest and most advanced economies. We apply various methodologies for assessing reserve adequacy in Central America, taking into account the region’s high degree of deposit dollarization. We find that reserve cover is low both in an absolute and relative sense, suggesting further reserve accumulation is an important policy option for reducing vulnerabilities.

Suggested Citation

  • Mrs. Kristin Magnusson Bernard, 2011. "International Reserve Adequacy in Central America," IMF Working Papers 2011/144, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2011/144
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    References listed on IDEAS

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    Cited by:

    1. Benecká, Soňa & Komarek, Lubos, 2018. "International reserves: Facing model uncertainty," Economic Systems, Elsevier, vol. 42(3), pages 523-531.
    2. Sona Benecka & Lubos Komarek, 2019. "International reserves as a mirror of external effects and macroeconomic policies," Occasional Publications - Chapters in Edited Volumes, in: CNB Global Economic Outlook - April 2019, pages 15-22, Czech National Bank.

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