Emerging Markets Need Reserves as Shock Buffers, RBI’s Das Says

Emerging markets need to build foreign-exchange reserves as buffers against external shocks even at the risk of being added to the U.S. Treasury Department’s watchlist for currency manipulation, Reserve Bank of India Governor Shaktikanta Das said.

Das’s comment during a speech Saturday comes a month after the Treasury Department added the South Asian nation to the watchlist citing India’s “significant” goods trade surplus with the U.S. and “sustained” net currency purchases through the year to June.