India might see a shortage of dollars in the coming days
He, however, assured that these outflows have been covered in the forward market and an advance deliveries of these forward positions will be carried by the central bank in the lead up to the maturity of these deposits. Simply put, Rajan has made sure that this sudden outflow of $20 billion doesn’t lead to any fluctuation in rupee’s value.
Four thousand U.S. dollars are counted out by a banker counting currency at a bank in Westminster, Colorado November 3, 2009. REUTERS/Rick Wilking/File Photo