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Figure 1 shows the effective reserve ratio for all countries in the sample at the end of 2004, where the effective reserve ratio is calculated as the ratio of statutorily required reserves to the sum of demand and time, savings and foreign currency deposits.4In the majority of
In Liberia, for example, the effective reserve ratio overstates the actual reserve ratio because IFS does not include data of foreign currency reserves even though these are subject to a reserve requirement.
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