Question
As per a recently released research paper by RBI,
what is the optimal hedge ratio for ECBs portfolio raised by firms in India?Solution
Indian corporates which have borrowed in US dollars are exposed to currency volatility as they may be 'inadequately' hedged to protect them from sudden swings in the direction of currency movement. A RBI research paper finds that depreciation of the Indian rupee has an adverse impact on the issuance of External Commercial Borrowings (ECBs) in the short as well as long run. The optimal hedge ratio for the ECBs portfolio is estimated at 63 per cent for the periods of high volatility in the forex market.
Which initiative is the Nikshay Mitra associated with?
The Sipat Super Thermal Power Station is located in which state ?
How much green hydrogen will India aim to produce annually by 2030 under the National Green Hydrogen Mission?
Which state launched the Mission Basundhara 3.0 initiative to provide land rights to indigenous people in October 2024?
What is the primary focus of the NPS Vatsalya scheme to be launched by the Union Finance Minister on September 18, 2024?
When is International Labour Day observed?
Dasht-e Lut Desert is a part of which of the following countries?
In which state is the G. B. Pant University of Agriculture located?
Ustad Bismilla Khan is famous for and an expert at playing the instrument ...................?
“Bihu” dance is related to which state?
Relevant for Exams:
