The buoyant economies of Central and Eastern European Countries (CEECs) have experienced substantial foreign investment and financial integration over the recent decades, accompanied by a significant accumulation of international reserves. The study demonstrates that membership in the European Union and the euro area are key factors differentiating reserve asset policies across the region with respect to internal and external vulnerabilities. Internal risks associated with the size of the domestic financial system affect all the countries considered, with the strongest impact on EU candidate countries and the weakest on euro area Member States. External risks stem from the foreign exposure of domestic equities and investment fund shares, which is of importance for the euro area CEECs, while non-euro area EU Member States and EU candidate countries are vulnerable to short-term external debt. Exchange rate misalignment is found to be a significant driver of reserves stockpiling in countries with independent monetary policies, with the most significant impact observed for non-euro area EU Member States. Finally, the propensity to import and opportunity cost prove to be insignificant.