Economics
India’s Record Forex Pile May Not Be Adequate, RBI Paper Says
- Researchers say import cover is less than other major holders
- Net investment position shows liablities exceed assets
Foreign exchange reserves surged to $605 billion in the week to June 4 as the RBI mopped up dollars flowing into the nation’s booming stock market as well as via foreign direct investments.
Photographer: Kanishka Sonthali/BloombergThis article is for subscribers only.
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India’s record more than $600 billion of foreign exchange reserves might not be good enough, as it falls short on some measures including import cover and liability outflows, according to a new research from the central bank.