Forex reserves

Monetary Authorities with the largest foreign reserves in 2007.
Central Bank/Monetary Authority	billion
People's Republic of China	$1066 (December)
Japan	$895 (January)
Russia	$311 (February 23)
Taiwan	$266 (January)
South Korea	$240 (January)
India	$193 (March 2007)

Answer these questions

• What is sterilization?
• What are MSBs?
• What are the components of forex reserves?
• Do you think a limit should be placed on the forex stock that the RBI could hold , as Mr.Chidambaram used to suggest when he was in opposition?
• Forex at $193 billion- what better use can be made of them ?