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Optimal Reserves in the Eastern Caribbean Currency Union

Author

Listed:
  • Mr. Wendell A. Samuel
  • Emilio Pineda
  • Mr. Mario Dehesa

Abstract

Recent turbulence in global and Caribbean regional financial markets underscore the importance of reassessing the adequacy of international reserves held by the Eastern Caribbean Central Bank (ECCB). Using the Jeanne (2007) optimization framework, this paper finds that international reserves held by the ECCB are generally adequate for a variety of external current account and capital account shocks. However, the ECCB would be challenged in the event of moderate to severe deposit outflows.

Suggested Citation

  • Mr. Wendell A. Samuel & Emilio Pineda & Mr. Mario Dehesa, 2009. "Optimal Reserves in the Eastern Caribbean Currency Union," IMF Working Papers 2009/077, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2009/077
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    References listed on IDEAS

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    Cited by:

    1. Cerezo Aguirre, Sergio Cerezo Aguirre, 2010. "Consideraciones sobre el nivel óptimo de reservas internacionales para Bolivia: 2003-2009," Revista Latinoamericana de Desarrollo Economico, Carrera de Economía de la Universidad Católica Boliviana (UCB) "San Pablo", issue 14, pages 41-70.
    2. International Monetary Fund, 2012. "Algeria: Selected Issues Paper," IMF Staff Country Reports 2012/022, International Monetary Fund.
    3. Winston Moore & Adrian Glean, 2016. "Foreign exchange reserve adequacy and exogenous shocks," Applied Economics, Taylor & Francis Journals, vol. 48(6), pages 490-501, February.
    4. Winston Moore & Jeremy Stephen & Caroline Elliott, 2016. "Should cryptocurrencies be included in the portfolio of international reserves held by central banks?," Cogent Economics & Finance, Taylor & Francis Journals, vol. 4(1), pages 1147119-114, December.

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