Borrowings from abroad is recorded on …
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Yogita Ingle 5 years, 3 months ago
(i) Borrowings from abroad are recorded in the Capital Account of the BOP because these give rise to foreign exchange liabilities. These are recorded on the credit side because these bring foreign exchange into the country. (ii) Borrowing from abroad raise supply of foreign exchange. Demand for foreign exchange remaining unchanged, exchange rate is likely to fall.Read more on Sarthaks.com - https://www.sarthaks.com/85377/indian-investors-borrow-from-abroad-answer-the-following
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