Abstract This paper examines the international liquidity concept and its implications for the foreign exchange markets of developing economies. International liquidity—the availability of global financial assets that can be readily used to settle international transactions—is a critical factor influencing exchange rate stability, trade finance, and macroeconomic policy. The paper first reviews key theories and instruments of international liquidity, such as reserve currencies, Special Drawing Rights (SDRs), and emerging multilateral arrangements. It then explores the structure and vulnerabilities of foreign exchange markets in developing economies, highlighting issues such as market depth, volatility, and susceptibility to external shocks. Finally, the paper discusses comprehensive policy frameworks for implementing liquidity management, including domestic regulatory reforms, exchange rate regime adjustments, and coordinated international policy actions. Through a mixture of theoretica...