| India's central bank might have found it difficult to stem the rupee's sharp depreciation during the currency crisis of 2013 by using its foreign exchange reserves, with the country's external liabilities far exceeding official reserves.
Reserve Bank of India's Deputy Governor H R Khan had highlighted the importance of building foreign exchange reserves to deal with sudden outflows. "Intervention in the face of the sharp depreciation is a difficult choice for several reasons, including loss of reserves, particularly in a country like India where the external liabilities far exceed the official reserves," Khan said...............................................Full Article: Source
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