World Affairs
  • Year: 2006
  • Volume: 10
  • Issue: 2

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

  • Author:
  • Ramgopal Agarwala
  • Total Page Count: 8
  • Page Number: 48 to 55

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.