Table 4 The annual cost of holding...

Table 4

The annual cost of holding reserves (percent of GDP) in some emerging market economies in 2018

Country	Annual cost of excess reserves (percent of GDP) assuming a 5% spread
Country	Three months of imports (M)	(M) + (STD)	(M) + (STD) + 5% of broad money (M2)	IMF assessing reserve adequacy (ARA) approach
Emerging Market Economies	0.82	0.35	−0.04	0.06
China, P.R.: Mainland	0.90	0.45	−0.03	−0.17
Brazil	0.82	0.64	0.43	0.39
Russia	0.89	0.75	0.61	0.67
Korea, Republic of	0.73	0.41	−0.12	–
India	0.39	0.20	−0.003	0.19
Thailand	1.27	0.67	0.37	1.01
Indonesia	0.30	0.07	−0.03	0.06
Peru	1.04	0.81	0.71	0.77
Mexico	0.19	−0.06	−0.16	0.09
Malaysia	0.62	−1.04	−1.35	0.15
Argentina	0.41	−0.24	−0.26	0.05
Poland	0.30	−0.13	−0.30	0.11
Egypt	0.39	0.18	−0.01	−0.21
South Africa	0.26	−0.24	−0.40	−0.34
Chile	0.31	−0.03	−0.19	−0.08
Bulgaria	1.28	0.54	0.33	0.78
Turkey	0.07	−0.68	−0.80	−0.33
Romania	0.22	−0.11	−0.21	0.18
Venezuela	−0.04	−1.25	−1.25	–
Hungary	−0.05	−0.74	−0.88	0.01

Country	Annual cost of excess reserves (percent of GDP) assuming a 5% spread
Country	Three months of imports (M)	(M) + (STD)	(M) + (STD) + 5% of broad money (M2)	IMF assessing reserve adequacy (ARA) approach
Emerging Market Economies	0.82	0.35	−0.04	0.06
China, P.R.: Mainland	0.90	0.45	−0.03	−0.17
Brazil	0.82	0.64	0.43	0.39
Russia	0.89	0.75	0.61	0.67
Korea, Republic of	0.73	0.41	−0.12	–
India	0.39	0.20	−0.003	0.19
Thailand	1.27	0.67	0.37	1.01
Indonesia	0.30	0.07	−0.03	0.06
Peru	1.04	0.81	0.71	0.77
Mexico	0.19	−0.06	−0.16	0.09
Malaysia	0.62	−1.04	−1.35	0.15
Argentina	0.41	−0.24	−0.26	0.05
Poland	0.30	−0.13	−0.30	0.11
Egypt	0.39	0.18	−0.01	−0.21
South Africa	0.26	−0.24	−0.40	−0.34
Chile	0.31	−0.03	−0.19	−0.08
Bulgaria	1.28	0.54	0.33	0.78
Turkey	0.07	−0.68	−0.80	−0.33
Romania	0.22	−0.11	−0.21	0.18
Venezuela	−0.04	−1.25	−1.25	–
Hungary	−0.05	−0.74	−0.88	0.01

Data: IMF, International Financial Statistics (IFS) World Bank, World Development Indicators and Assessing Reserve Adequacy (ARA) approach data is available online at: https://www.imf.org/external/datamapper/ARA/index.html

Source(s): Authors' calculations

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