rbi speech, 2006-05-25
Our experience has also highlighted the importance of building up foreign exchange reserves to take care of unforeseen contingencies, volatile capital flows and other developments, which can affect expectations adversely as the emerging economies have to rely largely on their own resources during external exigencies (or contagion) as there is no international 'lender of last resort' to provide additional liquidity at short notice on acceptable terms.
Sentiment: neutral
Topic: mp_exchange_rate