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RBI’s forex, liquidity management may dent government revenue

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A stable rupee also squeezed the chances of accretion in the currency and gold revaluation account (CGRA), even as there is debate on whether RBI should dig into this account to pay the government.

Synopsis

The returns for the Reserve Bank of India (RBI) are likely to be squeezed with investments in low yielding US dollar assets, and also due to payment of interest to banks in reverse repo.

Kolkata/Mumbai: India’s record foreign exchange reserves may have saved the blushes for the government, but the central bank’s earnings that help build a surplus and contribute to the country’s non-tax revenue may be dented.The returns for the Reserve Bank of India (RBI) are likely to be squeezed with investments in low yielding US dollar assets, and also due to payment of interest to banks in reverse repo.A stable rupee also squeezed the

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ET Bureau

5 mins read, Last Updated:

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