As India has gained prominence in the global economy, its central bank, the Reserve Bank of India, has wisely increased the level of foreign exchange holdings. These reserves are necessary to maintain payments for imports should there be a global economic financial crisis or a sudden devaluation of the ... READ MORE >
Reserve Bank of India
Morning market minute: The end of the Indian rupee’s effective dollar peg
A currency is a two-sided instrument. In the case of the Indian rupee-U.S. dollar exchange rate, the demand for the rupee has been overwhelmed by the demand for the dollar and a loss of competitiveness over the two years that the Reserve Bank of India has maintained a de-facto peg to the dollar. Now, ... READ MORE >
Global financial market evolution, the carry trade and India’s economic ascent
One of the most impressive changes to the global economy is the ascent of India and its growing role in international financial markets and the global economy. The size of its economy has doubled to $4 trillion over the past decade and it’s becoming a major player in the international economy. India ... READ MORE >
Global central bank outlook: Reducing rates to bolster growth
After two years of major central banks raising interest rates, the weighted global policy rate stands at a restrictive 7.2%. But with disinflation having taken hold around the world, it is time for central banks to reduce these rates. Usually, the Federal Reserve would lead the way. But with private ... READ MORE >