It is important to keep in mind that short-term debts owed to foreign banks are but just
one type of short-term foreign liability. Portfolio capital, bank deposits held by foreign nonbanks,
long-term loans with conversion covenants, and hedging instruments can all be withdrawn
very
quickly, putting further pressure on foreign exchange reserves and the exchange rate. At the
same
time, there may be other forms of foreign exchange assets in addition to official reserves that
can
be drawn upon in the event of a foreign creditor panic. A priority for future research should
be
to measure in a more comprehensive manner the short-term cross-border assets and liabilities
short-term debt, and the real was under intense attack.