International currency reserves in emerging market economies: does India have enough?
Abstract Purpose–This paper seeks to revisit the international reserve policies of emerging market countries; taking the case of India. Emerging market economies have lately been accumulating large foreign reserves. The paper aims to demonstrate how these reserves can be put towards effective growth by implementing better reserve and debt management policies. Design/methodology/approach–The paper uses descriptive and comparative ratio analysis methods and applies these to the case of Indian international monetary reserves. These methods provided a clear view of India’s international reserves and how reserve vulnerabilities can be identified. Findings–Based on the suggested benchmarks, the findings indicate that India may be holding reserves in excess of the suggested requirements. Research limitations/implications–Data on international monetary reserves need continual updating. Continuous longitudinal data would help in showing the true effects of international monetary reserve flu
