Short-term debt (% of total reserves)

This financial metric captures the proportion of a country’s short-term liabilities—those debts due within a year, including outstanding interest on long-term obligations—relative to its total reserves, which encompass liquid assets such as foreign currency, government bonds, and gold. A higher ratio may indicate potential liquidity risks, signaling that a nation might struggle to meet its immediate financial obligations without liquidating other reserve assets. Conversely, a lower percentage suggests a healthier balance, wherein a country possesses adequate reserves to cover short-term liabilities, thereby instilling confidence among investors and stakeholders. Assessing this ratio provides insights into a country’s financial stability and its ability to navigate economic fluctuations without extensive borrowing. Source: