Foreign Reserve Adequacy
A countrys foreign-exchange reserves measured against various stress benchmarks -- typically the IMF reserve adequacy metric, months of import cover, or short-term external debt coverage. Reserves serve as the central banks ammunition for defending the currency, smoothing import payments during stress, and meeting external debt obligations when private capital is unavailable. The traditional 3-months-of-imports floor is now considered too low for countries with open capital accounts; modern benchmarks emphasize coverage of short-term external debt and a composite IMF metric.
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10Y Treasury · Altman Z-Score · Asset Sensitivity · Basel III · Bond ETF · Bretton Woods
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