The Reserve Bank of India - Forex reserves touch new high of $330 billion
13 February 2015, 19:30
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417
Foreign
exchange reserves rose $2.7 billion during the week ended February 06
to touch a new high of $330.2 billion as the Reserve Bank bought
dollars, according to the latest data released by the central bank.
With most central banks including the US Fed and the European central bank adopting an easy monetary policy the global financial markets is flush with liquidity which is finding its way into emerging markets including India.
The Reserve Bank of India has been buying the dollars invested in the Indian markets and preventing an excessive appreciation of the rupee against the dollar and also building up a cushion of reserves to finance the external sector balance sheet.
"While we do have comfortable foreign exchange reserves, there is a strong view that no amount of such reserves can cushion extreme external shocks" said RBI deputy governor H R Khan said at CII event earlier this week. "That too here we are talking about nations. You can imagine how vulnerable corporates can become if they have too much of foreign currency exposures."
With most central banks including the US Fed and the European central bank adopting an easy monetary policy the global financial markets is flush with liquidity which is finding its way into emerging markets including India.
The Reserve Bank of India has been buying the dollars invested in the Indian markets and preventing an excessive appreciation of the rupee against the dollar and also building up a cushion of reserves to finance the external sector balance sheet.
"While we do have comfortable foreign exchange reserves, there is a strong view that no amount of such reserves can cushion extreme external shocks" said RBI deputy governor H R Khan said at CII event earlier this week. "That too here we are talking about nations. You can imagine how vulnerable corporates can become if they have too much of foreign currency exposures."
