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International Liquidity

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International Liquidity
International liquidity. External debt.

1. International Liquidity: concept, structure optimization.

International Liquidity has different meanings in international economic relations, in a limited sense, reflect the ability of international liquidity to finance the balance of payments deficit on account of foreign currency cash and other assets held by the monetary authority (central bank) of a country.
More broadly, international liquidity is the ability of the country (or group of countries) to ensure timely payment of its foreign obligations by means acceptable to the lender. In terms of foreign exchange liquidity in the global economy means all sources of international finance and international payments and credit of the movement depends on ensuring the international exchange system of international reserve assets required for its normal functioning. International Liquidity characterize the external solvency of certain countries or regions. External liquidity base currency and gold reserves of the state.
International liquidity structure includes the following components:
• the country's official foreign reserves;
• the country's official foreign reserves;
• reserve position in IMF (member country receives an automatic right to be credited in foreign currency with no more than 25% of its quota in the IMF);
• SDR accounts.
International Liquidity reflects the development of national economy, the degree of participation of the country's international trade efficiency and competitiveness of products in foreign markets.
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International liquidity is assessed through the prism of time period that can cover imports on account of international reserves held by central bank, to the extent that a country meets its imports over a period of six months of international reserves, international liquidity available, and countries in which international reserves cover the value of imports for shorter periods,

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