Performance of the banking sector during the crisis and challenges are discussed. The impact of the political crisis on the banking sector is outlined. The Kyrgyz Republic is one of the most open economies in the world. Gross international reserves (GIR) in the Kyrgyz Republic have increased more than sixfold in the last decade. Gold exports, remittances, and official development assistance have become important sources of reserve accumulation. The current level of reserves in the Kyrgyz Republic comfortably meets most reserve adequacy indicators, but fails on one metric used for low-income countries (LICs).
While the current level of international reserves in the Kyrgyz Republic comfortably meets rule-of-thumb reserveadequacyindicators, they do not appear to be adequate by at least one new metric used for LICs. Moreover, while reserve accumulation was very strong during the past decade, being a small open economy renders the Kyrgyz Republic particularly vulnerable to exogenous shocks .
A. I ntroduction
24. Gross international reserves (GIR) in the Kyrgyz Republic have increased more than six-fold in the last decade, although from a very low base
This paper applies intertemporal models of precautionary saving to compute an optimal level of international reserves for The Gambia. The analysis focuses on current account shocks specific to a low-income economy with a significant import component and complements a more standard, rule-of-thumb reserve adequacy assessment. The results suggest a central range from 4.5 months to 7 months of imports, which is broadly aligned with the recent actual coverage. Notwithstanding parameter sensitivity, the simulations allow for more informed policy decisions that balance flexibility with a prudent approach to reserve use.