What does ‘using’ foreign exchange reserves for infrastructure spending mean? - Moneycontrol.com
When government spends, even when funded by utilization of dollar reserves, it essentially has the same effect on prices as deficit spending
August 18, 2021 / 12:44 PM IST
On August 11, the Union Road Transport and Highways minister Nitin Gadkari proposed the formulation of a policy that would enable the government to utilize the growing surplus of foreign exchange (forex) reserves held at the Reserve Bank of India (RBI) for infrastructure development in the country. Before I attempt identifying the possible suggestions contained in the proposal, it is important to recognize what is meant by and what gives rise to ‘surplus’ reserves. The ‘necessary’ portion usually refers to the quantum of forex reserves required to...
Moneycontrol Pro Panorama| Recovery gains traction, but valuations are stiff
Aug 17, 2021 / 04:02 PM IST
In today’s edition of Moneycontrol Pro Panorama: Economy’s uneven progress, how Afghan economy fared under the US, new COVID wave looms, housing revival, Burger King India, Petronet LNG, spectre of lockdown in Israel and more