Seasonalities and foreign exchange adequacy Invariably, every economy has periods when foreign exchange outflows are heavy and periods when foreign exchange inflows are thin. It is important to convey that seasonal movements are what they are – seasonal – so that the public will not change their opinions about economic performance because of large outflows during such seasonal periods of high reserve use.
What is important, is that seasonalities are planned for, so that the reserves remaining during such periods are still at healthy levels. The same applies to periods of execution of major projects. The outflows resulting from the foreign exchange costs of such projects should not leave the foreign exchange reserves at levels where there are considered inadequate.