H R Khan

Forex kitty high, but may not cushion extreme volatility: RBI

Forex kitty high, but may not cushion extreme volatility: RBI

Mumbai: RBI Deputy Governor H R Khan on Tuesday said though the country's forex kitty was at an all time high of USD 330 billion, there should be no complacency as no amount of reserves may be enough to fight extreme volatility.

"Foreign currency reserves have improved. Right now we're at USD 330 billion, highest ever. But there is also a view that no amount of foreign exchange reserves can cushion when there is extreme volatility or external shocks," Khan said, days after weekly data showed an over USD 6 billion jump in forex to an all-time high.

"We are much better placed. In terms of fool proofing our balance sheet we have done quite a few things," Khan said, referring to the jump in reserves.

RBI relaxes ECB norms for housing and aviation sectors

RBI relaxes ECB norms for housing and aviation sectorsIn a bid to provide companies with easier access to cheaper funds for key infrastructure sectors, the Reserve Bank of India (RBI) on Tuesday relaxed external commercial borrowing (ECB) norms.

The central bank said it extended the ECB relaxation for the housing sector from one year to two more years and for the aviation sector by a few more months.

RBI will take action if liquidity deficit continues for long: H R Khan

RBI will take action if liquidity deficit continues for long: H R KhanReserve Bank of India (RBI) will step in if the ongoing spate of liquidity deficit persists for long, Deputy Governor H R Khan said.

Speaking to reporters on the sidelines of the Indian Banks’ Association’s two-day conference, Bancon 2012, Mr. Khan said that the problem of liquidity deficit might pass off, but if it becomes longer, then the central bank would take action.




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