International reserves play a crucial role in providing buffers against external financial shocks, particularly in Europe and Central Asia where reserves exceeding 17% of GDP have shown a significant effect [ff5dca3e]. The level of financial institutions and the degree of financial openness are important factors in determining the effectiveness of reserve strategies [ff5dca3e]. Policymakers should tailor their reserve strategies to the specific financial landscape of their country to enhance resilience and stability [ff5dca3e]. This analysis highlights the relationship between international reserves, real exchange rates, and the impact of financial integration on these variables [ff5dca3e].