๐Ÿ“œintro to political science review

International liquidity

Written by the Fiveable Content Team โ€ข Last updated August 2025
Written by the Fiveable Content Team โ€ข Last updated August 2025

Definition

International liquidity is the availability of assets that countries can use to settle international payments without causing drastic changes in exchange rates. It encompasses foreign exchange reserves, Special Drawing Rights (SDRs), and reserve positions in the IMF.

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