Tag: forex liquidity

Emerging and developing economies need to develop effective forex liquidity mechanisms to boost the use of local currencies in cross-border payments, RBI Governor Shaktikanta Das said.“The use of local currencies in cross-border payments can help to shield the EMDEs (emerging market and developing economy) from global shocks, protect against exchange rate fluctuations and encourage the development of local forex and capital markets,” Das said.While multilateral payment platforms that support multiple currencies would offer a way to promote such local-currency payments, FX and liquidity risks associated with EMDE currencies...