Rakesh Mohan: Risk management in an open market economy Speech by Dr Rakesh Mohan, Deputy Governor of the Reserve Bank of India, at the inaugural programme of the Centre for Advanced Financial Learning, Mumbai, 4 June 2007. Assistance of K. Damodaran and Himadri Bhattacharya in preparing the speech is gratefully acknowledged.
We bought Australian dollars low and sold them high, generally a good investment strategy. Or to put it the other way round, we sold foreign currency at a high price and were able to rebuild our reserves later at a cheaper price in Australian dollar terms.