India needs $60 bn forex reserves to sustain global volatilities: Report
The Dollar Business Bureau Despite a steady growth, India needs additional $60 billion foreign exchange reserves (Forex) in order to stay sustained to global volatilities, said a global financial major, in its latest release. The latest HSBC report says that India’s forex reserves in 2015 are beyond traditional norms, however, the country’s experiences in recent times suggest $60 billion buffer could help the country face tight financial situation globally. "We estimate an additional $60 billion of reserves, taking overall holdings to $420 billion, could take care of key vulnerabilities (such as un-hedged external commercial debt, short-term external debt and portfolio outflows)," said India Chief Economist Pranjul Bhandari, in a research note. Even though India had lost $20 billion of forex reserves during ...
