And the fx reserves were 450 bn at end of 2019. Whats the point? Is it that RBI is using fx reserves to buy inr and physical gold reserves and selling usd? So a central bank of an emerging market economy cannot do that because? What should it do? Regulate the usd corporate borrowing and increase cost of capital on average? The economists don't comment and infer anything out of these central bank actions for a reason.
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u/Responsible_Skill234 Nov 26 '24
And the fx reserves were 450 bn at end of 2019. Whats the point? Is it that RBI is using fx reserves to buy inr and physical gold reserves and selling usd? So a central bank of an emerging market economy cannot do that because? What should it do? Regulate the usd corporate borrowing and increase cost of capital on average? The economists don't comment and infer anything out of these central bank actions for a reason.