RBI Governor Shaktikanta Das stated a predominant a part of the excellent exterior business borrowings (ECBs) is successfully hedged. Of the excellent ECBs of $180 billion, 44 per cent or $79 billion is unhedged. This consists of about $40 billion liabilities of public sector firms, primarily within the petroleum, railways and energy sectors, which have belongings with a pure hedge character.
Besides, being public sector entities, their overseas trade threat, if any, could be absorbed by the federal government. “Such a contingency is unlikely to arise. The remaining $39 billion ECB represents 22% of ECBs outstanding. Even this includes borrowings of those firms which have a natural hedge … This would leave a very small portion of the total outstanding ECBs that are truly unhedged,” he stated.
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