MAR 17 2015
IMF chief Lagarde flags currency, Fed policy risks for India The appreciation of the US dollar is putting pressure on balance sheets of banks, firms and households that borrow in dollars, Lagarde highlighted
A normalization of monetary policy in the US and the recent rise of the dollar could pose challenges to emerging economies such as India, Christine Lagarde, managing director of International Monetary Fund (IMF), said while speaking at the Reserve Bank of India (RBI) on Tuesday.“India’s corporate sector, which has borrowed heavily in foreign currency, is not immune to this vulnerability. Corporate sector debt has risen very rapidly, nearly doubling in the last five years to about $120 billion,” she said.
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