Apropos the editorial "Preventing an exit" (April 11), data show how precarious our forex reserve position is. Out of the total reserve of $300 billion, almost half constitute of FII holdings -which is extremely volatile. In a pessimistic scenario, where exports remain sluggish and prices of both crude oil and gold increase, we could even see our reserves being reduced to about half the current levels. Hopefully, such a scenario will not play out, and we may be able to avoid taking resort to IMF funding.
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P V Rajeev New Delhi
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201
E-mail: letters@bsmail.in
All letters must have a postal address and telephone number