The purpose of such a review is to ensure that effective risk mitigants and sound internal controls are in place for managing such exposures. Some reflections From the above discussion, it is clear that the Impact on India would depend on the pace and extent of currency and current account readjustments, and changes in global interest rates.
While India by itself hardly contributes to global financial imbalances, any large and rapid adjustments in major currencies and related interest rates or current accounts of trading partners could indirectly impact the Indian economy. From the case of India, it is also clear that readjustment of the currencies and rise in interest rates would impact different EMEs differently.