A remarkable feature of the international financial system in the last decade has been the rapid and vast accumulation of foreign-exchange reserves by developing countries. World foreign reserves tripled from $2.1trillion in December 2001 to an unprecedented $6.5trillion in early 2008, according to IMF data. By Stephany Griffith-Jones, José Antonio Ocampo and Pietro Calice
Developing countries as a whole accounted for more than 80% of global reserve accumulation during this period, and their current level of reserves approaches $5trillion. Half of this volume is concentrated in developing Asia, but Latin America and Africa have also been amassing international assets at a remarkable pace. This pool of reserves surpasses developing countries’ immediate liquidity needs, leading to their increased creation and expansion of sovereign wealth funds, which have an additional level of assets of more than $3trillion ... ... this article comes up in Issue 5/Sep-Oct 2008 and is for subscribers only. For direct log in >>> click here.If you have no subscription >>> pick your option or >>>
At first glance, everyday life seems not to have changed in Istanbul. The streets are congested; people hurry to the ferry or the bus. For weeks, there has been no terror attack. Nevertheless, there are some visible changes. There are much more policemen in the streets. In some days, the Istiklal Caddesi, the main shopping street on the European side, seems to be under a state of siege. At every street corner, there is police van with the blue light switched on.
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