The Lack of International Reserves is Reaching a Critical Point

The macroeconomic problems remain the same. Policy dilemmas have not changed, but the situation is rapidly deteriorating, and the outcomes remain uncertain. The government’s unwillingness to tackle the critical policy problems, perhaps hoping that the bleeding of reserves would miraculously come to an end or that inflation would somehow fall into place have put the economy in an extremely fragile situation. And there are no expectations that things are going to improve.