There is virtual unanimity that the currency mismatches of financial intermediaries is a major source of risks of financial integration which has to be mitigated by monitoring and regulations and furthermore, that currency mismatches in the corporate sector can also be a source of risk to the financial sector. Hence the advice to banks to monitor unhedged exposures of borrowers.
Introduction  It is a great pleasure and privilege for me to be speaking at the 175th Annual General Meeting of the Madras Chamber of Commerce and Industry. I have had the opportunity to speak at previous events organized by the Chamber, and also interact with committee members and the secretariat during my tenure as the chairperson of the Economic Affairs Committee of ASSOCHAM.