Outbreak of 'yellow fever'

Central banks have started buying gold in large quantities and selling US dollars

The Reserve Bank of India (RBI) has used dollar-rupee swaps two months in a row to impart liquidity. The April auction collected $5 billion (bn) easily, with over $18 bn offered by banks.  But the three-year premium was appreciably higher in April than in March.

There’s a liquidity deficit despite the infusion of $10 billion rupee-equivalent (about Rs 70,000 crore) into the domestic bond market in the last two months. One reason is high government borrowing. Another is lower government spending with programmes stalled due to elections. This has meant lower payment disbursals into the system. The elections themselves have also