05451oam 22011894 450 991082069650332120240402050216.01-4623-5176-X1-4527-3495-X97866128410191-282-84101-71-4518-7008-6(CKB)3170000000055028(EBL)1607874(SSID)ssj0000944042(PQKBManifestationID)11503140(PQKBTitleCode)TC0000944042(PQKBWorkID)10978600(PQKB)11273811(OCoLC)762076576(MiAaPQ)EBC1607874(IMF)WPIEE2008150(EXLCZ)99317000000005502820020129d2008 uf 0engur|n|---|||||txtccrForeign Reserve Adequacy in Sub-Saharan Africa1st ed.Washington, D.C. :International Monetary Fund,2008.1 online resource (38 p.)IMF Working PapersIMF working paper ;WP/08/150Description based upon print version of record.1-4519-1461-X Includes bibliographical references.Contents; I. Introduction; II. Foreign Reserves in sub-Saharan Africa; Figures; 1. Reserves in Months of Imports; Tables; 1. Comparisons of International Reserves Across Regions, 1995-07; III. Shocks Facing Sub-Saharan Africa; 3. Reserves to Short-Term Debt <2, 2007; 4. Frequency Distributions of Key Parameters; 5. Frequency Distributions of Key Parameters; 6. Response of Key Macro Economic Variables to a Large TOT Schock; 7. Response of Key Macroeconomic Variables to a Large Aid Shock; IV. Small Open Economy with Two Goods; V. Simulation Results8. Optimal Reserve Behavior - Jeanne-Ranciere v.s. Two-Good9. Path of Consumption-Ranciere vs. Two-Good Model; 10. Optimal Reserve Behavior-Two Good Model with both TOT and Aid Shock [I]; 11. Optimal Reserve Behavior-Two Good Model with both TOT and Aid Shock [II]; 12. Actual Level of Reserves to GDP ratio for SSA countries; 13. Sensitivity of Optimal Reserves to Key Parameters; 14. Sensitivity of Optimal Reserves to Key Parameters; 15. Reserve Adequacy for African Countries Using Two-Good Model /1; VI. Conclusion; 16. Country Specific Application-Illustrative Examples.A1. Benchmark ParametersA2. Simulation Parameters for Countries; References; ReferencesThis paper looks at the question of adequacy of reserves in sub-Saharan African countries in light of the shocks faced by these countries. Literature on optimal reserves so far has not paid attention to the particular shocks facing low-income countries. We use a two-good endowment economy model facing terms of trade and aid shocks to derive the optimal level of reserves by comparing the cost of holding reserves with their benefits as an insurance against a shock. We find that the optimal level of reserves depends upon the size of these shocks, their probability, and the output cost associated with them,.IMF Working Papers; Working Paper ;No. 2008/150Foreign exchangeAfrica, Sub-SaharanEconometric modelsBank reservesAfrica, Sub-SaharanEconometric modelsForeign exchangeEconometric modelsBank reservesEconometric modelsBanks and BankingimfExports and ImportsimfMacroeconomicsimfEmpirical Studies of TradeimfMacroeconomics: ConsumptionimfSavingimfWealthimfMonetary PolicyimfForeign AidimfInternational economicsimfBankingimfTerms of tradeimfConsumptionimfInternational reservesimfAid flowsimfTrade balanceimfEconomic policyimfnternational cooperationimfEconomicsimfForeign exchange reservesimfEconomic assistanceimfBalance of tradeimfCongo, Democratic Republic of theimfForeign exchangeEconometric models.Bank reservesEconometric models.Foreign exchangeEconometric models.Bank reservesEconometric models.Banks and BankingExports and ImportsMacroeconomicsEmpirical Studies of TradeMacroeconomics: ConsumptionSavingWealthMonetary PolicyForeign AidInternational economicsBankingTerms of tradeConsumptionInternational reservesAid flowsTrade balanceEconomic policynternational cooperationEconomicsForeign exchange reservesEconomic assistanceBalance of trade332.410967DcWaIMFBOOK9910820696503321Foreign Reserve Adequacy in Sub-Saharan Africa3995609UNINA