RESERVE ADEQUACY IN TURKEY: A STUDY ON COMPARISON OF THE RESERVES WITH IMPORTS AND SHORT-TERM EXTERNAL DEBT*
Künye
Kilci, E. N. (2019). Reserve adequacy in Turkey: a study on comparison of the reserves with imports and short-term external debt. Academic Review of Economics and Administrative Sciences, 12(4), 578-588.Özet
The changes in the international reserves of a country, which reflect the financial power of an economy and
considered significantly by international investors, are of great importance in terms of financial stability and
are taken into consideration increasingly in the academic literature. Two of the traditional criteria used by
the International Monetary Fund to assess reserve adequacy is to compare the international reserve level of
a country with the optimal reserve amount, which represents %25 of the annual imports and to compare net
international reserve level with short-term external debt. The objective of this study is to investigate the
international reserve adequacy in Turkey over the period of 2011:Q3-2018:Q4 based on this approaches by
employing Fourier Granger causality test proposed by Enders and Jones (2016). The findings of the analysis
indicate that while the reserves are adequate in Turkey according to the first approach, the reserves seem
inadequate when taken into account the second approach in the relevant period.