Now, with the global rise in the interest rates, there is always a lurking fear in the EMEs, that the level of capital flows may not be maintained. Thus, the comfort level of reserves should not be viewed with respect to the current situation alone but should also reckon the assessment of the emerging risks.
Moreover, at this moment, the global economy has not been tested on the eventuality of a not-soorderly correction of the current global imbalances. In that eventuality, as the experts caution, disruption in financial markets in the form of large cross-currency volatility and sharp rise in interest rates are not unlikely in the global economy.