 An ILLR might also provide a cushion against shocks and volatility, as well as reduce the likelihood of financial panic within countries and financial contagion across countries.Moreover, an ILLR might allow a country's Central Bank to shift their holdings from liquid but low-yielding foreign exchange reserve to less liquid but longer-term and higher-yield assets.Finally, having an ILLR with established rules and procedures in place before a crisis might make collective action problems less likely than in the case of an exclusively ex post response.