The Main Trends in the International Effort to Strengthen Global Liquidity after the Financial Crisis of 2008/2009

Abstract

Significant international attention has been directed to the most pressing
problem of the financial crisis of 2008/2009 – global liquidity shortages. The
use of adequate foreign exchange reserves during the crisis helped
alleviate pressures. However, this was only partially effective in a number of
important cases. Some countries also needed to rely on external official
financing. The aim of this article is to compare and analyse the main
sources of official global liquidity - foreign exchange reserves, bilateral
swap lines of central banks, regional financial arrangements and IMF
resources. To reach effective outcomes in relation to the accumulation of FX
reserves and a strengthening of the global financial safety nets, effective
international coordination will be necessary.