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Emerging economies have significantly increased their foreign reserves from $796.8 billion in 2001 to $7.05 trillion in 2016, driven by the need for stability amid exchange rate volatility and external debt pressures. India, despite holding substantial reserves, faces a persistent current account deficit, leading to high opportunity costs associated with reserve accumulation. The document discusses the rationale behind reserve accumulation, the costs involved, and India

Author

rishikapajwani

Language

EN