Economy Basics

Foreign Exchange Reserve

In context of India, Foreign Exchange Reserves include: Foreign currency assets (FCAs) Gold Special Drawing Rights (SDRs) RBI’s Reserve position with International Monetary Fund (IMF) FCAs constitute the largest component of the Forex Reserves. FCAs consist of US dollar and other major non-US global currencies. It also comprises of investments in US Treasury bonds, bonds …

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Masala Bonds

The Masala bond refers to a rupee-denominated bond through which Indian entities can raise money from foreign markets in rupee, and not in foreign currency Bonds are instruments of debt that are typically used by corporates to raise money from investors By issuing bonds in rupees, an Indian entity is protected against the risk of …

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