How Many Reserves Does Turkey Need? Some Thoughts on the IMF’s Reserve Metric (Brad Setser, CFR)

Turkey has long ranked at the top of most lists of financially vulnerable emerging economies, at least lists based on conventional vulnerability measures. Thanks to its combination of a large current account deficit and modest foreign exchange reserves, Turkey has many of the vulnerabilities that gave rise to 1990s-style emerging market crises. Turkey’s external funding need—counting external debts that need to be rolled over—is about 25 percent of GDP, largely because Turkey’s banks have a sizable stock of short-term external debt.

http://blogs.cfr.org/setser/2016/07/19/how-many-reserves-does-turkey-need-some-thoughts-on-the-imfs-reserve-metric/