Rajan advocates for caps on overseas investment
16/09/2014 16:27
Warning on reliance over foreign debt, Reserve Bank Governor Raghuram Rajan supported for continuing with caps on overseas investments in debt, said the media report.
"...We are limiting our reliance on foreign debt. It is important we keep it this way and manage the economy in way that is careful and that is circumspect," Raghuram Rajan said, while addressing 55th foundation day celebrations at the Somaiya Vidyavihar.
The Reserve Bank had in July raised the Foreign Institutional Investors' debt limit by USD 5 billion to USD 25 billion, after the investments started nearing the USD 20 billion threshold.
Rajan said that the country has benefited from the foreign flows into the country, but advised caution, while dealing with such investments, which chase the best yields.
"We have to be careful about this money because if we say, 'this is wonderful, they all like us, we follow tremendous policies and that's why we got this money', and we go and spend, we run large current account deficits based on these foreign borrowings," he said
16/09/2014 16:27
Warning on reliance over foreign debt, Reserve Bank Governor Raghuram Rajan supported for continuing with caps on overseas investments in debt, said the media report.
"...We are limiting our reliance on foreign debt. It is important we keep it this way and manage the economy in way that is careful and that is circumspect," Raghuram Rajan said, while addressing 55th foundation day celebrations at the Somaiya Vidyavihar.
The Reserve Bank had in July raised the Foreign Institutional Investors' debt limit by USD 5 billion to USD 25 billion, after the investments started nearing the USD 20 billion threshold.
Rajan said that the country has benefited from the foreign flows into the country, but advised caution, while dealing with such investments, which chase the best yields.
"We have to be careful about this money because if we say, 'this is wonderful, they all like us, we follow tremendous policies and that's why we got this money', and we go and spend, we run large current account deficits based on these foreign borrowings," he said
