As excess liquidity dries up, RBI’s growth-inflation trade off in focus3 min read . Updated: 21 Sep 2022, 02:23 PM IST
- The foreign currency assets of the RBI stood at $550 billion as of 25 March. By 9 September, they had shrunk to $490 billion, implying that the RBI has been massively selling dollars and buying rupees. In the process, it has managed to shrink the excess liquidity in the financial system.