In this second part, I want to start addressing some of the possible causes of the depreciation of the foreign exchange rate 
since 2015. However, we must first take stock to see whether the economy is indeed not generating enough foreign currencies. In 2007, the BOG held US$254 million in net international reserves. This number reached its peak of US$825 million in 2012. It has subsequently declined, reaching its lowest value of US$595 million in 2015. The reserve level increased marginally in 2016, but fell to US$598 million at the end of February 2017.
Overall, these numbers exceed the three months of import cover, which is typically an international benchmark that says the central bank has enough reserves to support imports for three months.
The commercial banks also hold foreign reserves that are also known as net foreign assets (NFAs). These transactions are necessary for servicing the international transaction needs of customers.
