By Our Correspondent
Mumbai, May 16: The turnover in the foreign exchange market is 6.6 times the size of India’s balance of payments during 2005-06 as compared to 5.4 times in 2000-01.
Disclosing this at the first French Indian Financial Forum Paris Europlace on Thursday, Dr Rakesh Mohan who talked of the developments in the financial markets in India said the basic aim of the financial market development is to aid economic growth and development.
He said there had been a complete transformation in the money market, the government securities market and the foreign exchange market over the past decade.
He said “in a low income economy like ours the cost of downside risk is very high and so the objective of maintaining financial stability has to be constantly kept in view as we develop financial markets.” (full text).