FOREX Reserves

http://business.inquirer.net/money/topstories/view/20090824-221844/Forex-reserves-in-Asia-excessive--ADB

“Holding reserves provides benefits, in particular protection against unexpected shortages of foreign exchange and currency crisis, but it also entails a number of substantial costs … The larger the excess reserves, the larger will be the loss of national welfare,” ADB said in a recent paper written by ADB economists Donghyun Park and Gemma Estrada.

In the case of the Philippines, its reserves continue to register record highs, reaching $40 billion as of end-July.
The ADB added that ideally, foreign currency reserves should be equivalent to four months worth of imports.
The Philippines’ reserves, meanwhile, are enough to cover 6.9 months worth of imports.