India Foreign Exchange Enough To Cushion Against Any Vulnerability: DBS

Posted By:
Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    In the September month, Indian foreign exchange touched a whopping mark of US$402.5 billion which as per the Development Bank of Singapore is good enough to combat any external vulnerabilities. In a report on Indian bank, the financial services major said that the import cover that is overall reserves less gold is way improved than in the 2013 taper tantrum.

    The term taper tantrum refers to the increase in the yields of the US treasury that was the result of gradual stimulus reduction in the US economy. Indian rupee reeled during this time. Since then which saw Indian foreign reserves stand at the lowest levels of USD 275 billion in August 2013, the collection has only grew. The rise has been attributed to a constant increase in FPI, net investment flows as well as narrower CAD.

    The Singapore based bank today said, "Beyond the strong year-to-date jump, we expect the pace of reserves accumulation to moderate due to slower incremental portfolio flows and wider current account deficit".

    As per the DBS, foreign inflows in the second half as also incremental dollar inflows have eased. In case the global risk appetite declines, the authorities will need to dig into reserves so as to trim extreme market volatility.

    With Inputs From PTI

    Story first published: Tuesday, October 17, 2017, 13:39 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more