Forex Reserves no doubt have been on the increase and are at somewhat comfortable leve, but the fact that the external debt is in excess of these Reserves cannot be ignored. The share of short term debt is also on the increase needs to be factored into. The best way to enhance the Forex Reserves is to increase the exports considerably particularly high value items through enhanced industrial production and project exports. The import of non essential items needs to be curtailed and imports substitutes should get encouragement through meticulous planning and execution. While inflows need to be given a boost, the outflows call for caution through persuation and moralsuation as liberalisation should not lead to misuse. Management of reserves deserves continuous monitoring and skilled deployment to attract returns and further flows.
Dr.T.V..Gopalakrishnan
(this comment is given against the Editorial in BL on More Cover needed dated 9/8/14)
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