Table 2 Annual cost of reserve...

Table 2

Annual cost of reserve accumulation as a self-protection strategy (percent of GDP) in some emerging market and developing economies in 2015

Country	Total reserves excluding gold, US dollars, millions	Reserves in months of imports^*	Excess reserves, US dollars, millions	Excess reserves (percent of GDP)	Annual cost of precautionary reserves (percent of GDP)
Country	Total reserves excluding gold, US dollars, millions	Reserves in months of imports^*	Excess reserves, US dollars, millions	Excess reserves (percent of GDP)	Assuming a 3% spread	Assuming a 5% spread	Assuming a 7% spread
Emerging and Developing Economies	7,049,43	11.67	5,237,36	17.87	0.54	0.89	1.25
Emerging Market Economies	5,937,05	11.75	4,421,52	17.30	0.52	0.86	1.21
China, P.R.: Mainland	3,345,19	20.05	2,844,62	25.34	0.76	1.27	1.77
Korea, Republic of	363,15	8.15	229,42	16.59	0.50	0.83	1.16
Brazil	354,18	17.48	293,40	16.29	0.49	0.81	1.14
India	334,31	8.16	211,34	10.11	0.30	0.51	0.71
Russia	319,84	13.63	249,39	18.26	0.55	0.91	1.28
Mexico	173,46	4.87	66,55	5.78	0.17	0.29	0.40
Thailand	151,27	7.90	93,83	23.50	0.71	1.18	1.65
Indonesia	103,27	7.47	61,77	7.17	0.22	0.36	0.50
Malaysia	93,98	6.01	47,06	15.88	0.48	0.79	1.11
Turkey	92,92	5.01	37,23	4.33	0.13	0.22	0.30
Poland	91,40	4.95	36,01	7.54	0.23	0.38	0.53
Peru	60,41	16.12	49,17	25.57	0.77	1.28	1.79
South Africa	41,62	4.99	16,59	5.22	0.16	0.26	0.37
Chile	38,63	6.46	20,69	8.53	0.26	0.43	0.60
Hungary	33,02	3.97	8,04	6.61	0.20	0.33	0.46
Nigeria	30,61	5.00	12,24	2.48	0.07	0.12	0.17
Argentina	23,42	3.75	4,66	0.74	0.02	0.04	0.05
Egypt	13,28	2.36	−3,60	−1.08	−0.03	−0.05	−0.08
Venezuela	6,32	1.49	−6,37	−2.62	−0.08	−0.13	−0.18

Country	Total reserves excluding gold, US dollars, millions	Reserves in months of imports^*	Excess reserves, US dollars, millions	Excess reserves (percent of GDP)	Annual cost of precautionary reserves (percent of GDP)
Country	Total reserves excluding gold, US dollars, millions	Reserves in months of imports^*	Excess reserves, US dollars, millions	Excess reserves (percent of GDP)	Assuming a 3% spread	Assuming a 5% spread	Assuming a 7% spread
Emerging and Developing Economies	7,049,43	11.67	5,237,36	17.87	0.54	0.89	1.25
Emerging Market Economies	5,937,05	11.75	4,421,52	17.30	0.52	0.86	1.21
China, P.R.: Mainland	3,345,19	20.05	2,844,62	25.34	0.76	1.27	1.77
Korea, Republic of	363,15	8.15	229,42	16.59	0.50	0.83	1.16
Brazil	354,18	17.48	293,40	16.29	0.49	0.81	1.14
India	334,31	8.16	211,34	10.11	0.30	0.51	0.71
Russia	319,84	13.63	249,39	18.26	0.55	0.91	1.28
Mexico	173,46	4.87	66,55	5.78	0.17	0.29	0.40
Thailand	151,27	7.90	93,83	23.50	0.71	1.18	1.65
Indonesia	103,27	7.47	61,77	7.17	0.22	0.36	0.50
Malaysia	93,98	6.01	47,06	15.88	0.48	0.79	1.11
Turkey	92,92	5.01	37,23	4.33	0.13	0.22	0.30
Poland	91,40	4.95	36,01	7.54	0.23	0.38	0.53
Peru	60,41	16.12	49,17	25.57	0.77	1.28	1.79
South Africa	41,62	4.99	16,59	5.22	0.16	0.26	0.37
Chile	38,63	6.46	20,69	8.53	0.26	0.43	0.60
Hungary	33,02	3.97	8,04	6.61	0.20	0.33	0.46
Nigeria	30,61	5.00	12,24	2.48	0.07	0.12	0.17
Argentina	23,42	3.75	4,66	0.74	0.02	0.04	0.05
Egypt	13,28	2.36	−3,60	−1.08	−0.03	−0.05	−0.08
Venezuela	6,32	1.49	−6,37	−2.62	−0.08	−0.13	−0.18

Note(s): The value of the imports of goods and services of all the Emerging and Developing Economies (according to the IMF classification) was calculated by the authors as it was not available in the World Bank data, IMF, International Financial Statistics (IFS) and World Bank, World Development Indicators

Source(s): Authors' calculations. Data: IMF, International Financial Statistics (IFS) and World Bank, World Development Indicators

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