5  Official liquidity can be defined as the amount of funds that is unconditionally available to settle claims through monetary authorities, mainly consisting of central bank money in reserve currencies and foreign exchange reserves. 6  See, for example, Caballero 2009 and Caballero and Krishnamurthy 2009.
4  BIS central bankers’ speeches  Three core drivers of reserve accumulation can be identified, in particular: 1. A few surplus EMEs buy dollars as a by-product of a strategy aiming to systematically keep their real effective exchange rate undervalued;  2.