{
  "title": "Jordan’s International Reserve Position: Justifiably Strong",
  "publication": "IMF Working Papers, May 1, 2007",
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  "summary": "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.",
  "sections": [
    {
      "heading": "Summary and main conclusion",
      "content": "- Jordan has seen a large increase in its international reserve holdings in recent years.\n- Determining optimal reserve levels under a fixed exchange rate regime is not straightforward.\n- 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."
    },
    {
      "heading": "Analytical approach and Methods",
      "content": "- Comparative analysis using several traditional measures of reserves adequacy to compare Jordan's reserve holdings with other emerging market (EM) countries.\n- A reserves-optimizing model based on Jeanne and Ranciere (2006) (J-R), extended to allow reserve holdings to influence the likelihood of a sudden stop."
    },
    {
      "heading": "Key findings",
      "content": "- Traditional reserves adequacy measures indicate that Jordan’s reserves have expanded substantially relative to many EM comparators.\n- The extended J-R reserves-optimizing model implies that higher reserve holdings reduce the likelihood of a sudden stop.\n- Combining traditional measures and the optimized-model results, Jordan’s reserve position is judged sufficient to:\n  - Sustain the dinar peg.\n  - Deal with the most extreme capital account disruptions."
    },
    {
      "heading": "Subject tags and keywords",
      "content": "- Subjects: Capital inflows, Current account deficits, External debt, International reserves, Sudden stops\n- Keywords: FX deposit, holdings compare, optimal reserve, reserve, WP\n\n---\n\n Content in this bundle\n\n- wp07103\n  - wp07103 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp07103 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/jordans-international-reserve-position-justifiably-strong-20665"
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    "[Markdown version](/en/publications/wp/issues/2016/12/31/jordans-international-reserve-position-justifiably-strong-20665/index.md)",
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    "Authors: Stanley B Watt, Donal McGettigan, Saade Chami",
    "Published: May 1, 2007",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451866674.001",
    "Jordan has seen a large increase in its international reserve holdings in recent years.",
    "Determining optimal reserve levels under a fixed exchange rate regime is not straightforward.",
    "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.",
    "Comparative analysis using several traditional measures of reserves adequacy to compare Jordan's reserve holdings with other emerging market (EM) countries.",
    "A reserves-optimizing model based on Jeanne and Ranciere (2006) (J-R), extended to allow reserve holdings to influence the likelihood of a sudden stop.",
    "Traditional reserves adequacy measures indicate that Jordan’s reserves have expanded substantially relative to many EM comparators.",
    "The extended J-R reserves-optimizing model implies that higher reserve holdings reduce the likelihood of a sudden stop.",
    "Combining traditional measures and the optimized-model results, Jordan’s reserve position is judged sufficient to:",
    "Subjects: Capital inflows, Current account deficits, External debt, International reserves, Sudden stops",
    "Keywords: FX deposit, holdings compare, optimal reserve, reserve, WP",
    "**_wp07103**"
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