Source: Business Standard Relevance: Foreign Exchange reserves in India and issues related to it Synopsis: India should do away with the prevailing RARE model of reserves in a phased manner. Contents1 Context2 RARE model3 Reasons behind huge forex reserve by RBI4 Why India needs to relook RARE model?5 Measures Context The foreign exchange reserves in India are… Continue reading Reserves: The RARE model in India
Tag: Foreign exchange reserves
Exchange rate driven by capital flows, says RBI
According to Reserve Bank of India Deputy Governor,India’s foreign exchange reserves are borrowed reserves and not built out of export surplus.This means that exchange rate dynamics in India is driven by capital flows rather than current account balances. Current account includes export and import of goods and services while Capital account includes inflow and outflow… Continue reading Exchange rate driven by capital flows, says RBI
Stable rupee, lower oil prices push forex reserves to all-time high
According to the government data,India’s foreign exchange reserves has reached an all-time high of $430.37 billion till July 19,2019. This surge in the foreign currency reserves was aided by the Recently conducted currency swaps worth $10 billion by the Reserve Bank of India. Further,the inflows have also come on the back of a stable rupee… Continue reading Stable rupee, lower oil prices push forex reserves to all-time high
