However, we do need to develop new measures of foreign exchange adequacy, with some urgency, before we can draw conclusions as to how much is enough.
Until then – and this seems some way in the future – it is my prediction that, notwithstanding recent policies in Chile and Mexico – which are exceptions to the rule for developing countries and everyone is watching how their policies turn out – that without stronger guarantees and reliable formulae, central banks in developing countries will continue to accumulate foreign exchange reserves.