2min chapter

Capitalmind Podcast cover image

How the Govt borrows and why you should lend to them directly

Capitalmind Podcast

CHAPTER

Why Do Central Banks Need a Contingency Reserve?

The central bank is the onlyino institution where a rupee is a liability, not an asset. At any time there's a crisis, it prints more rupees. It doesn't need a contingency reserve to protect its balance sheet. The arbia is distrusting of the government. And at this point, i see no reason for us to trust the arbia more than we trust the government to be honest.

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