IMF paper identifies risk of low reserve adequacy in Central America

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An International Monetary Fund paper, published in June, says low levels of international reserves in Central American countries may leave them vulnerable to economic shocks.

Kristin Magnusson Bernard, the paper's author, assesses the reserve adequacy in Costa Rica, the Dominican Republic, Honduras, Guatemala and Nicaragua to identify adequacy and demand drivers for international reserves in Central America. They argue that while countries' absolute and relative international reserve adequacy

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