Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/72775
Year of Publication: 
2010
Series/Report no.: 
Documento de Trabajo No. 11/10
Publisher: 
Universidad Católica Boliviana, Instituto de Investigaciones Socio-Económicas (IISEC), La Paz
Abstract (Translated): 
In recent years, Bolivia has accumulated a significant level of international reserves due to favorable external environment and the exchange rate regimen (crawling peg). In this context arises the question of: Which one is the optimal level of international reserves? According to the traditional indicators of adequacy of reserves and according to a model that shows the role of the reserves as a reliever of adverse external shocks, optimal reserves are located below the actual saved in the central bank since 2007. This result holds even when gold and non-financial public sector deposits of foreign currency at the central bank are excluded from the actual reserves. However, a sensitivity analysis shows that optimal reserves may increase considerably if some macroeconomic fundamentals change.
JEL: 
F31
F32
F41
Document Type: 
Working Paper

Files in This Item:
File
Size
224.98 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.