MUMBAI (Reuters) - The unhedged foreign exchange exposure of Indian businesses is a risk for the country's economic and financial stability, a deputy governor of India's central bank said on Tuesday.
Speaking at an industry conference in Mumbai, deputy governor H.R. Khan said the central bank would not "micromanage" firms' hedging strategies, but he said companies needed to "take care" of their unhedged exposures.
Khan also said the Reserve Bank of India (RBI) needs to continue to prepare for volatility, even though macroeconomic risks have subsided.
In times of extreme volatility, no amount of foreign exchange reserves are enough, he said.
(Reporting by Suvashree Dey Choudhury; Editing by Clara Ferreira Marques)
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