Amid rising global geopolitical uncertainty and intensifying financial and commodity market volatility, policymakers and economists are sharpening their focus on building economic resilience through stronger reserve buffers. ADVERTISEMENTIn an article published on BasisPoint Insight, Patra emphasised that the level of reserves plays a crucial role in shaping market confidence and deterring speculative attacks. First, reserves must be adequate to cover all external debt obligations falling due within one year, estimated at around $300 billion to $350 billion. Taken together, these requirements push the optimal reserve level to at least $1 trillion, with the exact figure depending on the share of liquid assets available for immediate intervention. The committee warned of a potential “triple whammy” of surging crude prices, heightened market volatility, and maritime disruptions arising from the West Asia conflict.

Source: The Telegraph March 18, 2026 03:39 UTC