This stress, besides impacting repayment of forex liabilities, eventually hampers their debt repayment capability to the domestic lenders as well. It is precisely with this consideration that RBI has been  1  Facility to Avail Liquidity for Liquidity Coverage Ratio.
BIS central bankers’ speeches  3  advocating a curb on the increasing tendency of the corporates to dollarize their debts without adequate risk mitigation. Our supervision of banks’ books has highlighted the need for the banks to have more robust policies for risk mitigation on account of unhedged foreign currency exposure of their corporate borrowers.