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A country's defined foreign reserve assets less the foreign liabilities deducted under the relevant reserve measure.
The calculation depends on which assets and liabilities the reporting framework includes. Assets may include foreign-currency deposits and securities, SDR holdings and the IMF reserve position. Changes can reflect purchases, borrowing, repayments or valuation effects. Borrowed foreign currency can increase assets, but the net result depends on whether the associated liability is deducted under the relevant definition.
In a simplified example, qualifying foreign assets are US$8 billion and included foreign liabilities are US$1 billion. Net reserves are US$7 billion. If the authority borrows US$500 million and both the asset and corresponding liability enter this calculation, gross assets rise to US$8.5 billion while net reserves remain US$7 billion. The source of the increase therefore matters.
Jamaica’s reserves rise as borrowed foreign funds enter the balance