currency reserves. The process involved (1) placement of their surpluses by the oil exporting countries in the Euro-currency market or the United States, and (2) borrowing from those markets by the oil importing deficit countries so that it became possible for the reserves paid out by the latter to be fully replenished through borrowing. Thus, virtually, the entire growth of reserves of the surplus oil exporting countries came from the creation of new dollar reserves. See IMF Annual Report, 5 See, eg, H G Johnson, "Theoreti-
