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Drivers of Reserves Accumulation in the South East Asian Countries

Author

Listed:
  • Min B. Shrestha

    (Nepal Rastra Bank)

  • Theresia A. Wansi

    (Marymount University)

Abstract

Most of the developing countries in the past were striving to maintain a comfortable level of foreign exchange reserves sufficient to cover imports of goods and services. These days, several emerging economies hold a high volume of foreign exchange reserves. This paper reviews the foreign exchange reserves accumulation trends in the South East Asian countries and investigates the major causes behind the surge in foreign exchange reserves in these economies. The empirical test results suggest that economic growth is the main driver of reserves accumulation in the South East Asian countries and the direction of impact of other factors on reserves accumulation differ according to the structure of trade and capital flows of the respective countries.

Suggested Citation

  • Min B. Shrestha & Theresia A. Wansi, 2014. "Drivers of Reserves Accumulation in the South East Asian Countries," Working Papers wp02, South East Asian Central Banks (SEACEN) Research and Training Centre.
    • Handle: RePEc:sea:wpaper:wp02
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    File URL: https://www.seacen.org/publications/RePEc/702003-100334-PDF.pdf
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    References listed on IDEAS

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    Cited by:

    1. Eufrocinio M. Bernabe, Jr. & Dongkoo Chang, 2014. "Policy Strategy Towards Achieving Investment Grade Status for Emerging Economies," Working Papers wp04, South East Asian Central Banks (SEACEN) Research and Training Centre.

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    Keywords

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    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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