Even then yields on dollar and euro assets were also low.
The central bank also directly borrowed reserves from a US asfset manager, by switching rupee assets to dollars.
The central bank's interest income from foreign assets fell to 7.
1 billion from 19 billion a year earlier.
But a depreciation of the currency added 8.
8 billion in rupee exchange gains this year in rupees.
As the bank's Treasury bill portfolio (domestic assets) rocketed during the balance of payments crisis local currency interest income rose to 25 billion rupees from 6.5 billion a year earlier, leaving it with a net profit of 33 billion rupees.
Profit Model
Central banks come from a clever scheme designed by smart European financiers to make easy profits by financing the government through creating credit and money at the expense of inflation.
Before central banking there was no significant inflation in the world and people were prepared to deposit their money (gold) in banks at no interest bec