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Journalism of Courage
Reserve Bank Governor Bimal Jalan on Monday said there will be no problems in meeting the oil bill in the event of a war in Iraq but admitted that it could affect inflation “temporarily”. “There will be no problem in meeting the oil bill as foreign exchange reserves are comfortable,” Jalan said, adding “we can handle the situation.” The country’s forex reserves are at over $72 billion even after the prepayment of $3 billion worth of high cost loans to World Bank and ADB. He, however, said the inflation rate may be affected temporarily depending upon how long the war-like situation lasts.
