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The rapid growth in international reserves accumulation in many emerging Asian economies has challenged economists with a puzzle and has revitalised the reserves adequacy literature recently. Recent works mostly focus on a large group of countries in trying to explain such behaviour. However, this paper aims to assess reserves adequacy for Thailand in particular. We see that taking into account the catastrophic impact of the 1997 Asian financial crisis, the rapid development and worldwide integration of financial systems, the current high level of Thailand's reserves seems reasonable subject to some modifications in the traditional rules and theoretical approaches used in this paper to justify the reserves level in Thailand over the past decades. [ABSTRACT FROM AUTHOR]

This article examines the dynamic growth of international reserves for the entire group of Latin American countries in an international comparative perspective and with respect to variables such as imports, current account balances, capital flows and gdp. We also present a review of the theories to analyze the causes, and a balance of benefits and maintenance costs. We have used the Wijnholds methodology to determine the necessary levels of international reserves for the period 2005-2008, considering the commitments of public and private external debt in the short term, and potential leakage of deposits from the local financial system. It is estimated that, for the last year, levels of excess reserves are equivalent to between US$ 170-200 billions. Also, the annual maintenance cost is equivalent to 0.8 per cent of gdp for all the countries surveyed. Finally, it outlines a set of proposals to take advantage of these circumstances. [ABSTRACT FROM AUTHOR]

The optimal reserve level theory aims to protect the economy against external shocks to its balance of payments, providing the international liquidity needed in emergency situations. The methodological applications available have limitations that compromise the results of the analysis of the optimal level in Colombia. This article offers an alternative approach to optimal international reserves and a consistent methodological framework to overcome these limitations and add trust to the monetary authorities and international agents. [ABSTRACT FROM AUTHOR]

Developing countries’ reserves have increased dramatically in recent years—growing by over 60% since the Asian financial crisis. This paper explores the self-insurance motivation behind this. As a first step, it revisits the literature on international reserve demand. This paper then examines the reserve-holding trends in a sample of 65 developing countries. It seeks to answer the following: Have reserves increased across the board or have these been concentrated in a few countries? If so, does it represent a break in previous policy? At what cost? This paper concludes by briefly examining some policy implications and avenues for future research. [Copyright &y& Elsevier]

After declining steadily from 1974 to 1994, the U.S. dollar share of international currency holdings has been rising dramatically over the past few years, making the dollar the primary vehicle for liquidity in global markets. This article will argue that dollar usage is founded on the overwhelming military and economic power of the United States, making it unlikely that there will soon be a flight from the dollar. [ABSTRACT FROM AUTHOR]