We have more debt than the Foreign Exchange: the Reserve Bank

New delhi date. September 10, 2019, Tuesday

The Reserve Bank opined that we have a foreign exchange rate much lower than foreign debt and that this situation is risky.

A report prepared by former RBI Governor Bimal Jala said that in 2008 we had more foreign exchange than foreign debt. That situation has changed now.

Foreign debt is high and foreign exchange is low. Foreign debt equals one trillion dollars while foreign exchange equals 400 billion dollars. Eliminating this inequality is inevitable in the interest of the economy.

The report suggests that immediate steps need to be taken in view of the external threats and threats. It is important that our foreign exchange reserves be sound. This step is necessary to maintain stability even in times of economic slowdown, the sooner the better, ”the report said.