World Affairs
Year : 2006, Volume : 10, Issue : 2
First page : ( 48) Last page : ( 55)
Print ISSN : 0971-8052.

Foreign exchange reserves policies of India and other Asian countries: Problems and opportunities

Agarwala Ramgopal

Abstract

A few Asian states currently hold the world’s largest foreign exchange reserves but India for one, has not made a productive use of its surplus balance, which carries a high opportunity cost. Setting up Asian economic and financial mechanisms (such as a Reserve Bank of Asia) in order to plow back this bounty into infrastructure build-up could help rapidly overcome the continent (and the world’s) poverty.

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