European financial markets have remained unstable, however, with a rise again in Greek government bond  2  BIS central bankers’ speeches  yields and a decline in stock prices, mainly of financial institutions. Since the outbreak of the Greek crisis in May 2010, the number of countries targeted by the markets has increased.
In India, the Reserve Bank of India Act 1934 contains the enabling provisions for the RBI to act as the custodian of foreign reserves, and manage reserves with defined objectives. The powers of being the custodian of foreign reserves is enshrined, in the first instance, in the preamble of the Act.