## International Reserves in Low Income Countries: Have they Served As Buffers?

_IMF Working Papers, January 1, 2012_

## Source details

**Canonical URL:** [International Reserves in Low Income Countries: Have they Served As Buffers?](https://www.imf.org/en/publications/wp/issues/2016/12/31/international-reserves-in-low-income-countries-have-they-served-as-buffers-25573)

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## Bibliographic details
- Published: January 1, 2012
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781463930561.001

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### Summary
- This paper provides a historical perspective on the role of international reserves in low-income countries as a cushion against large external shocks over the last three decades - including the current global crisis.
- The results suggest that international reserves have played a role in buffering external shocks, with the resulting macroeconomic costs varying with the nature of the shock, the economy's structural characteristics, and the level of reserves.

### Key findings
- International reserves have served as a buffer against large external shocks in low-income countries over the last three decades.
- The macroeconomic costs associated with using reserves to buffer shocks vary with:
  - the nature of the shock;
  - the economy's structural characteristics;
  - the level of reserves.

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/international-reserves-in-low-income-countries-have-they-served-as-buffers-25573_