TY - BOOK ID - 84544276 TI - International Reserve Adequacy in the Gambia PY - 2010 SN - 1462346650 1455208280 128356887X 9786613881328 1455209732 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Banks and Banking KW - Exports and Imports KW - Macroeconomics KW - International Finance: General KW - Foreign Exchange KW - Monetary Policy KW - Trade: General KW - Macroeconomics: Consumption KW - Saving KW - Wealth KW - Empirical Studies of Trade KW - Banking KW - International economics KW - International reserves KW - Imports KW - Consumption KW - Terms of trade KW - Reserves accumulation KW - Central banks KW - International trade KW - National accounts KW - Reserve positions KW - Foreign exchange reserves KW - Economics KW - Economic policy KW - nternational cooperation KW - Gambia, The KW - Balance of payments. KW - International finance. KW - Nternational cooperation UR - https://www.unicat.be/uniCat?func=search&query=sysid:84544276 AB - 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. ER -