10 The difference is that in Asia the risks arise from holdings of foreign-currency assets which have been accumulated as a result of exchange-rate management. There is obviously valuation risk on such holdings. There is also often a negative carry on such assets since yields on the Asian domestic obligations which effectively fund foreign holdings are typically higher than those in the major countries.
16,000 crore (the monetised deficit) plus Rs.7,000 crore on account of the increase in the average level of WMA. This presumption is wrong for two reasons: First, the budget estimates for monetised deficit at Rs.16,000 crore would consist of the increase in RBI’s holdings of Government securities including dated Government securities and the RBI’s holdings of auctioned Treasury bills.