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History shows that central banks rarely stem a currency's long-term decline simply by spending foreign-exchange reserves.Just last week, Argentina spent about $3 billion, or 5 percent of its reserves, to bolster the peso after it fell to a record low. Indonesia is a more cautionary tale: The central bank drained $6 billion of foreign reserves in February and March partly to stabilize the rupiah and may have further eroded the $126 billion pile as it stepped up intervention this month.That led the central bank to say it's preparing a second line of defense to ensure liquidity.
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