InvestorQ : what are the components of international liquidity?
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what are the components of international liquidity?

Answer
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Arusha Ray answered.
2 weeks ago


International liquidity normally refers to the liquidity infusion by global central banks that are normally infused by purchasing bonds from banks and insurers and infusing cash into the system. Normally, such liquidity flows tend to push up global equities.

When institutions are flush with funds, they normally try to look for higher returns via emerging market index funds like in the case of India. That is what keeps global liquidity robust.