Assessing Reserve Adequacy
The Reserve Adequacy Measure compares reserve holdings and alternative metrics of reserve adequacy. It also permits such comparison for multiple countries.To create a cross country comparision chart:
As a rule of thumb, reserves within 100-150 percent of the new ARA metric are considered adequate
(see Assessing Reserve Adequacy and
Assessing Reserve Adequacy - Further Considerations)
An additional reserve buffer is necessary for commodity intensive economies, consider this template as an illustrative example that calculates the buffer for a fuel importer and a fuel exporter.