⚠️Automatic translation pending review by an economist.
International foreign exchange reserves refer to the foreign currency, gold, and special drawing rights held by a country’s central bank. To track changes in these reserves, they are often expressed in terms of the number of months of imports of goods and services that they would allow to be purchased. It is generally accepted that when the level of reserves in months of imports is above the threshold of three months, the central bank has sufficient foreign exchange reserves. Since the Fed began tapering in May 2013, many economies have seen a decline in this ratio, raising fears of an increase in currency risk in these countries.
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