The availability of timely and comprehensive data on the foreign-currency positions of the private sector is also essential for efficient reserve management in a multiple-currency world. A world of multiple reserve currencies is also a world in which membership of a monetary union carries significant benefits.
First, the ability to borrow and lend in a common currency and access to the liquidity facilities of a common central bank limits the need to accumulate foreign currency reserves. The provision of eurosystem liquidity provided an important buffer mechanism in coping with the sudden stops of private capital flows during 2008–2012.