The curious case of India’s rising forex reserves and falling rupee

News: Further expansion of RBI’s balance sheet without normalizing credit offtake (demand for credit) will only raise economic risks. How RBI manages its balance sheet? RBI’s balance sheet consists of the asset side and the liability side. Reserve Money (RM) or base money – Asset side:  It consists of net domestic assets (NDA) and net… Continue reading The curious case of India’s rising forex reserves and falling rupee

Reserves: The RARE model in India

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. Context The foreign exchange reserves in India are close to $620 billion. Recently, a parliamentary panel and the Union Minister Nitin Gadkari observed that the Reserve Bank… Continue reading Reserves: The RARE model in India

A rupee wish for India@100

Source: Indian Express Relevance: An ambitious goal for India’s 100th year of Independence in 2047. Synopsis: Prosperity is possible and best accomplished by the goal of making the rupee a global reserve currency by 2047. Conditions are opportune. An analysis. Characteristics of Reserve currency A reserve currency has to serve as a medium of exchange,… Continue reading A rupee wish for India@100