Sudden Hurry For Dollar Flows: While arresting Rupee’s Fall, RBI has built a $100 Billion Mountain of Shorts - GujaratSamachar English
Sudden Hurry For Dollar Flows: While arresting Rupee’s Fall, RBI has built a $100 Billion Mountain of Shorts - GujaratSamachar English
Source: GujaratSamachar English
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DW NOTE
The RBI defended the rupee by selling dollars it didn't own. Now it owes $100 billion in forward contracts — a liability that comes due regardless of what happens to India's reserves or fiscal position. Every central bank that has tried to hold a currency peg with borrowed firepower has eventually been forced to choose between default and devaluation. The RBI has simply pre-loaded the crisis.