• SENSEX
    NIFTY 50
Business

The perils of currency mismatch in India and how to deal with it

Updated : October 18, 2019 11:43 PM IST

A sharp rise in currency mismatch is a key indicator of financial crisis, as has been the experience in emerging markets such as Mexico and East Asian economies.
Domestic companies expect the government and RBI to intervene now, but such intervention in the forex market would signal panic situation and fuel a self-fulfilling prophecy of crisis.
Reducing friction in the domestic credit market will ease the reliance on short-term capital flows.
The perils of currency mismatch in India and how to deal with it

You May Also Like

Live TV

recommended for you

Advertisement