Abstract
India has been stockpiling international reserves at an impressive pace during the last two decades or so. Reserves have sky-rocketed from around USD 5–6 million in 1991 to nearly USD 300 billion in mid-2008, among the highest in the world after China and Japan. India’s reserves took a dip in mid-2008, following the reversal of capital flows induced by the global financial crisis as the RBI attempted a partial defense of the Indian Rupee to moderate the pace of its depreciation. However, as the crisis abated and the country saw the Congress-led government return to power in May 2009, foreign capital has begun surging back to India once again, helping the country to rapidly rebuild its foreign exchange reserves (Figure 19.1).
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© 2011 Ramkishen S. Rajan and Sasidaran Gopalan
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Gopalan, S. (2011). India’s International Reserves: How Diversified?. In: Emerging Asia. Palgrave Macmillan Studies in Banking and Financial Institutions. Palgrave Macmillan, London. https://doi.org/10.1057/9780230306271_19
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DOI: https://doi.org/10.1057/9780230306271_19
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-31562-8
Online ISBN: 978-0-230-30627-1
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