Management of official reserves: the perspectives and the Indian experience
By: Pattanaik, Sitikantha.
Material type:
ArticlePublisher: 1996Description: p.93-120.Subject(s): Foreign exchange
In:
Reserve Bank of India: Occasional PapersSummary: "The paper highlights some of the issues relating to management of official reserves in the context of a market based exchange rate policy, a liberalised payments regime and the healthy build up of reserves experienced since April 1993 in India. The focus is on identifying the major determinants of demand for reserves and estimating the reserve demand function which would help in assessing reserve optimality. Econometric analysis conducted in the paper using both conventional and cointegration techniques indicates that volume of international transactions (i.e. scale factors) and the volatility of such transactions (i.e. instability) are the important determinants of demand for reserves in India which underscores the importance of a stable external environment for management of reserve levels. The cointegration results also establish the opportunity costs of holding reserves as another important determinant of reserve demand in India"
| Item type | Current location | Call number | Vol info | Status | Date due | Barcode |
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Articles
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Indian Institute of Public Administration | Volume no: 17, Issue no: 2 | Available | AR32276 |
"The paper highlights some of the issues relating to management of official reserves in the context of a market based exchange rate policy, a liberalised payments regime and the healthy build up of reserves experienced since April 1993 in India. The focus is on identifying the major determinants of demand for reserves and estimating the reserve demand function which would help in assessing reserve optimality. Econometric analysis conducted in the paper using both conventional and cointegration techniques indicates that volume of international transactions (i.e. scale factors) and the volatility of such transactions (i.e. instability) are the important determinants of demand for reserves in India which underscores the importance of a stable external environment for management of reserve levels. The cointegration results also establish the opportunity costs of holding reserves as another important determinant of reserve demand in India"
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