Intervention difficult when currency falls sharply, says RBI

......In a speech at a recent event at Cape Town, South Africa, 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............

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