RBI deputy governor says emerging markets must bolster domestic finances
Foreign money has become a less reliable source of financing for Asia’s third-largest economy despite its rapid growth, adding to pressure on the rupee
Emerging markets, including India, need to strengthen their finances and build buffers against volatile foreign capital, Reserve Bank of India Deputy Governor Poonam Gupta said Tuesday. “External flows are, for most part, fickle,” Gupta said at an event hosted by the Business Standard newspaper in Mumbai. She added that such volatility is something emerging markets have to contend with. “You continue to work on your domestic finances becoming stronger, so that you reduce your dependence on external finance in a macro way.”
