Bloomberg states that Suresh Tendulkar, an economic adviser to Indian Prime Minister Manmohan Singh, is urging the government to diversify its $264.6 billion foreign-exchange reserves and hold fewer dollars. He said, “the major part of Indian reserves are in dollars -- that is something that’s a problem for us,”
Presently, there is a domination of US $ as a global currency reserves. Russia and China have already stepped up calls for a rethink of how global currency reserves are composed and managed. They are planning for a system to maintain the stability of the major reserve currencies.
It has increased further uncertainty to Developing countries foreign exchange reserves holding and investment as well. Foreign exchange reserves portfolio of developing countries like Nepal must be changed so as to avoid likelihood foreign exchange loss.
Presently, there is a domination of US $ as a global currency reserves. Russia and China have already stepped up calls for a rethink of how global currency reserves are composed and managed. They are planning for a system to maintain the stability of the major reserve currencies.
It has increased further uncertainty to Developing countries foreign exchange reserves holding and investment as well. Foreign exchange reserves portfolio of developing countries like Nepal must be changed so as to avoid likelihood foreign exchange loss.
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