Forex reserves can be used to fund GDP

New Delhi: Given the lack of considerable space both on the monetary and fiscal front to support economic growth, part of the country’s forex reserves can be used to support GDP numbers, says a Deutsch Bank report.

According to report, forex reserves could be used for funding growth-critical public infrastructure projects and the macro backdrop is also suitable for this. 

It said the reserves adequacy strength remains considerably stronger than what is prescribed and hence a case can be made in favour of using a small portion of the forex reserve.