RBI Bulletin – May 2024 - RBI - Reserve Bank of India
RBI Bulletin – May 2024
Today, the Reserve Bank released the May 2024 issue of its monthly Bulletin. The Bulletin includes three speeches, four articles, and current statistics. The four articles are: I. State of the Economy; II. Decentralised Finance: Implications for Financial System; III. Currency Swaps of the Reserve Bank of India: Role in the GFSN and Fostering International Financial Cooperation; IV. Consumer Confidence in India: A Regional Perspective. I. State of the Economy The outlook for the global economy is turning fragile as the descent of inflation is stalling, re-igniting risks to global financial stability. Capital flows have become volatile as nervous investors turn risk averse. II. Decentralised Finance: Implications for Financial System by Srijashree Sardar, Dipak R. Chaudhari and Sangeeta Das Decentralised finance (DeFi) seeks to disintermediate the traditional financial system. However, developments such as the FTX crypto exchange collapse, decline in Binance and episodes of instability in stablecoins have created trust deficit in the entire crypto system. This article assesses DeFi and its interlinkages with the traditional financial systems by employing an Exponential General Autoregressive Conditional Heteroskedastic (EGARCH) model. Highlights:
III. Currency Swaps of the Reserve Bank of India: Role in the GFSN and Fostering International Financial Cooperation by Ajesh Palayi Central bank currency swaps are an integral part of the Global Financial Safety Net (GFSN) and have played a crucial role in the global financial system since the Global Financial Crisis. This article examines various central bank currency swap arrangements of the Reserve Bank of India and their role in fostering international financial cooperation. Highlights:
IV. Consumer Confidence in India: A Regional Perspective by Sourajyoti Sardar, Aditya Mishra, Manu Swarnkar, and Tushar B. Das This article uses qualitative data from the Reserve Bank of India's Consumer Confidence Survey (CCS) to study regional trends in consumer sentiments in India. It introduces the "Regional Sentiment Indicator" (RSI) and employs qualitative data analysis techniques like coherence analysis and ordered logistic regression to examine variations in survey responses across different regions. Highlights:
The views expressed in the Bulletin articles are of the authors and do not represent the views of the Reserve Bank of India. (Puneet Pancholy) Press Release: 2024-2025/341 |