So, depending on one’s political vulnerability, it is not only important to have large reserves, but it is also important to be mindful of where they are held. BIS Review 1/2006  3  Capital account liberalization and reflows of foreign exchange reserves The level of foreign exchange reserves is heavily influenced by the extent to which the capital account is liberalized.
Earthquakes, like other natural disasters – tsunamis, hurricanes and ice storms come to mind – are entirely exogenous, extreme events – acts of God, if you will. They are not preventable, although their impact can be reduced by building resilience and by timely and effective disaster response.