Low Foreign Reserves Lead to Prolonged Economic Recovery in South Sudan
The paper looks at how a country's economy can stay stable after a big change, like splitting from another country. It found that if the country keeps money from leaving, the exchange rate can stay steady even if exports drop. But if the country doesn't have enough foreign money saved up, the exchange rate might keep changing. If the government spends more than it has and its savings go down, the country's money value will go down too.