To counter the challenges from key vulnerabilities such as unhedged external commercial debt, short term external debt and portfolio outflows, India needs an additional $60 billion of reserves, which would take the overall holdings to $420 billion, notes HSBC. Pranjul Bhandari and Prithviraj Srinivas of HSBC in their June 26, 2015 research note titled: “How much is too much? point out that India’s main vulnerability has gradually transitioned from trade imbalance to indebtedness. India’s three recent episodes of turmoil Bhandari and Srinivas start off with a note that traditional metrics and benchmarks indicate India has adequate reserves. With its current…
India Could Need $60 Billion Additional Reserves: HSBC
Mani
Mani is a Senior Financial Consultant. He has worked in Senior Management role in large banking, financial and information technology organizations. He has provided solutions for major banking and securities firms across the globe in the area of retail, corporate and investment banking. He holds MBA (Finance) and Professional Management Accounting Qualifications. His hobbies are tracking global financial developments and watching sports