Business
Indian Reserve Banks Intervenes in Global Crisis
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The Indian Reserve Bank is pumping money to preserve the liquidity of India’s financial markets in the wake of the global financial crisis. At the peak of the U.S. Wall Street meltdown, the bank provided $7.3 billion in additional liquidity to domestic banks.
In a statement, the bank said, “The recent extraordinary global developments triggered by the bankruptcy/sellout/restructuring of some of the world’s largest financial institutions have resulted in severe disruptions of international money markets, sharp declines in stock markets across the globe and extreme investor aversion. These developments have also brought some pressures to bear on the domestic money and forex markets.” Foreign investors withdrew over $1 billion from India in September, strengthening the dollar, which jumped to over Rs 46.63 at the end of the month. |
