Insta
RBI Governor Shaktikanta Das.
With record high forex reserves with it and the fall in interest rates globally, the Reserve Bank is looking to begin investments into AAA-rated corporate bonds for the first time, reports Economic Times.
The likely move to invest in corporate bonds comes as the RBI has seen its returns fall in the background of monetary policies easing globally in the wake of COVID-19 pandemic induced economic woes.
With forex reserves worth $560.63 billion at present, the RBI mostly invests in gold, sovereign debt and other such risk-free deposits.
It should be noted that AAA-rated corporate bonds offer better returns than sovereign credit. But, the RBI is expected to move carefully towards them given it has in the past not made such investments. Meanwhile, RBI is already said to have started to increase its investments in gold gradually.
RBI is likely to continue to buy dollars and intervene in the currency markets to prevent any appreciation in the value of Rupee, in turn adding to the size of the reserves.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
Latest