How govt of India and RBI can manage the risk of foreign currency borrowing

By |Economy|

In the past, India has undertaken expensive foreign currency-denominated borrowing from NRIs through Resurgent India Bonds, India Millennium Deposit bonds and dollar-denominated deposits. This time, the government is proposing to issue a small sovereign bond. The risk is small, considering the size of the borrowing, the inflation-targeting monetary policy framework [...]