000			01380pab a2200157 454500
008			180718b1996 xxu||||| |||| 00| 0 eng d
100			_aPattanaik, Sitikantha
245			_aManagement of official reserves: the perspectives and the Indian experience
260			_c1996
300			_ap.93-120
362			_aJun
520			_a"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"
650			_aForeign exchange
773			_aReserve Bank of India: Occasional Papers
909			_a32086
999			_c32086 _d32086