Jordan's International Reserve Position : Justifiably Strong /

Jordan has seen a large increase in its international reserve holdings in recent years. While a healthy reserve buffer is needed under a fixed exchange rate regime, determining optimal reserve levels is not straightforward. In this paper, we first use several traditional measures of reserves adequac...

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Bibliografski detalji
Glavni autor: Watt, Stanley
Daljnji autori: Chami, Saade, McGettigan, Donal
Format: Žurnal
Jezik:English
Izdano: Washington, D.C. : International Monetary Fund, 2007.
Serija:IMF Working Papers; Working Paper ; No. 2007/103
Online pristup:Full text available on IMF
Opis
Sažetak:Jordan has seen a large increase in its international reserve holdings in recent years. While a healthy reserve buffer is needed under a fixed exchange rate regime, determining optimal reserve levels is not straightforward. In this paper, we first use several traditional measures of reserves adequacy to compare Jordan's reserve holdings with other emerging market (EM) countries. Subsequently, we analyze Jordan's reserve holdings using a reserves-optimizing model, based on Jeanne and Ranciere (2006) (J-R), but extended to allow reserve holdings to influence the likelihood of a sudden stop. The overall analysis suggests that Jordan's reserve holdings provide sufficient support to sustain the dinar peg and to deal with the most extreme capital account disruptions.
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Opis:1 online resource (19 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Pristup:Electronic access restricted to authorized BRAC University faculty, staff and students