Emerging market economies, including India, need to keep foreign exchange reserves liquid: RBI paper

"Our results indicate that there is a 5 percent chance of portfolio outflows from India of the order of 3.2 percent of GDP or US $ 100.6 billion in a year in response to a COVID-type contraction in real GDP growth, or a global financial crisis -GFC- type decline in interest rate differentials vis-à-vis the US, or a GFC type surge in the VIX" said a study titled " Capital Flows at Risk: India’s Experience" published in the latest RBI Bulletin.

Emerging market economies, including India, need to keep foreign exchange reserves liquid: RBI paper
"Our results indicate that there is a 5 percent chance of portfolio outflows from India of the order of 3.2 percent of GDP or US $ 100.6 billion in a year in response to a COVID-type contraction in real GDP growth, or a global financial crisis -GFC- type decline in interest rate differentials vis-à-vis the US, or a GFC type surge in the VIX" said a study titled " Capital Flows at Risk: India’s Experience" published in the latest RBI Bulletin.