Their international reserves would decline and or their debt would rise.

Today, currencies other than the dollar account for 40 of identified international reserves.

Growth has been strong, inflation is under control, and international reserves have increased steadily.

Developing countries main defense against world financial instability has been to accumulate international reserves.

Back then, international monetary diplomacy focused on creating a new form of international reserves, what became the International Monetary Fund s Special Drawing Rights.

The IMF also has the unique advantage of being the only depositary of international reserves.

Ukraine s international reserves are a reassuring 26 billion, roughly one quarter of the country s GDP.

International bankers estimate that roughly two thirds of Chinese reserves have been invested in dollar assets.

Reserves

With huge current account and budget surpluses, it had accumulated international reserves of 600 billion by July.

The country has the world's largest natural gas reserves, the 8th largest oil reserves, and the second largest coal reserves.

Africa s natural gas reserves amount to about 8 of global reserves.

Managing a floating rate has also allowed Latin American countries to accumulate a significant level of international reserves.

How can the need for large foreign exchange reserves experienced by emerging market developing countries to provide self insurance against volatility in international trade and financial flows, and the cost of those reserves, be reduced?

The recent move by the 28 member International Energy Agency to release oil from strategic reserves proves this point.

Finally, with more than 3.3 trillion in foreign exchange reserves, China is a particularly attractive target for international speculators.

More than 60 of Venezuela's international reserves is in gold, eight times more than the average for the region.

(l) Other reserves

(j) Operating reserves

But hoarding international reserves, mostly in the form of low yielding short term US Treasury securities, is expensive and inefficient.

While Chile has not yet intervened in the foreign exchange market, Colombia and Peru have increased their international reserves massively.

Rich countries also helped to create the Paris based International Energy Agency, which coordinates policies (including strategic reserves) among consumer countries.

(g) Transfers to reserves

Recent financial crises have taught countries that those with large reserves are better able to weather the vicissitudes of international financial markets.

And, to address volatile capital flows, countries should increase exchange rate flexibility, maintain adequate international reserves, and implement carefully designed capital controls.

Other reserves comprise the following

Second, countries with large accumulations of dollar reserves will be shifting substantial fractions of those reserves into euros.

So instead of using its vast foreign exchange reserves to bolster the international system, China is picking up strategic assets on the cheap.

Similarly, the creation of international strategic resource reserves on neutral territory and under neutral management could help alleviate concerns about politically motivated disruptions.

Meanwhile, the fraction of international reserves held in euros grew from 18 to 24 , and the dollar s share dropped from 71 to 66 .

Covering this drop in reserves more than half of gas reserves and a fifth of oil reserves have been consumed with imports implies an annual cost of more than 300 billion.

Even if an SDR Substitution Account is established, it is unlikely that the dollar s share in international reserves would fall to an insignificant level.

Furthermore, China should be allowed to convert part of its foreign exchange reserves into assets denominated in the International Monetary Fund s special drawing rights (SDRs).

However, in later periods the objective was to avoid real exchange rate appreciation, and, at the same time, to accumulate international reserves and strengthen credibility.

a Including earmarked reserves, the total reserves are 70 million for 2002, 93 million for 2003 and 68 million for 2004.

It is estimated that the Norwegian section alone contains 54 of the sea's oil reserves and 45 of its gas reserves.

a Including earmarked reserves, the total reserves are 70 million for 2002, 93 million for 2003 and 68 million for 2004.

It has 10 of global oil reserves.

According to some estimates, Kazakhstan has the second largest uranium, chromium, lead, and zinc reserves, the third largest manganese reserves, the fifth largest copper reserves, and ranks in the top ten for coal, iron, and gold.

The IMF also has the unique advantage of being the only depositary of international reserves. In the absence of an international fiscal authority, the IMF is the organization that comes closest to being one.

Africa is estimated to hold more than 10 of global oil reserves and one third of reserves of cobalt and base metals.

In fact, estimates by the International Energy Agency suggest that the most significant recoverable reserves of shale gas are in the US and China, not Europe.

Fortunately, a combination of flexible exchange rates, strong international reserves, better monetary regimes, and a shift away from foreign currency debt provides some measure of protection.

Once the tailspin began in 1997, governments lack of reserves hampered their ability to rescue failed banks, forcing them to appeal to international institutions for relief.

This spring, the euro s exchange rate against the dollar reached an all time high, and central banks have increased the euro share of their international reserves.