Synergy
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- Jun 27, 2020
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if I'm not mistaking, a large chunk of Indian forex consists of govt/institutional bonds and private remittances.No Sir please, we are all the same here.
Our forex reserves are a bit of a mirage in reality. A large component of this reserve is what’s known as hot money, I.e. investment in stocks and the like and not from export surplus, unlike China, Korea etc. Essentially, this can disappear overnight. It’s important to not get carried away with that foreign exchange reserve figure.
we can also buy some $ that will lead to weaker ₹ but won't be a big problem if we can minimise import and it'll help export.
$50/100 b should not be a very big deal (with proper planning).