in unsecured fed funds rate. 12. now consider the use of the mibor. the benchmark is used in the ois market. the mibor - ois is the only liquid interest rate derivative market in our country ( apart from mifor ) with, as i mentioned earlier, an open interest of ₹77 lakh crore in the current financial year. the mibor is also the benchmark for inr ois trades in the global markets ( nd - ois ). i don ’ t think i need to emphasize to this audience the importance of this benchmark and the need for constant vigilance in maintaining its robustness and reliability given dwindling transactions and shrinking participant base in the call money market. 13. while volumes in the call money market have been declining, the mibor benchmark continues to be determined based on actual transactions. further, its integrity is ensured given the fact that the call money rate is the target rate for monetary policy transmission and participants in the market have access to the liquidity facilities of rbi. among the other overnight benchmarks, the market repo overnight rate ( mror ) based on market repo transactions. prima facie, this benchmark being based on transactions in a more liquid market and one with a wider participant base can normally be considered to be more robust. however, the benchmark is not based on pure inter - bank market that can take the place of mibor. repo markets, while significantly larger, incorporate entities that do not have access to central bank liquidity and therefore their pricing is less robust than call rates for developing benchmark that tracks possible policy rate actions. 14. in the term money market, fbil is publishing term mibor benchmarks. in the absence of a liquid term money market, these benchmarks are based on polled submissions. the development of the term money market remains elusive notwithstanding several reforms both from a regulatory and a liquidity management perspective. most of the constraints have been addressed / removed in phases. the eligible participant base in term money markets has been expanded. however, liquidity in the term money market remains negligible and the development of a robust term money benchmark curve remains a work in progress. of course, these are issues not unique to india and are observed in peer nations as well. as libor is getting phased out these problems are faced even by developed markets. 15. the other segments of the money market – the markets for treasury bills and cds

duvvuri subbarao : emerging market economies leading global growth remarks by dr duvvuri subbarao, governor of the reserve bank of india, at a panel discussion on the “ role of emerging economies going forward and key policy challenges ”, washington dc, 9 october 2010. * * * the three issues laid out in today ’ s agenda are particularly relevant at this juncture and how we answer them in the months ahead will determine how the world regains and then sustains economic growth and financial stability. let me begin with the first issue : how can emerging market economies ( emes ) best contribute towards securing global economic prosperity? the most important way in which emes can contribute to global economic prosperity is by doing more of what they have been doing – that is by maintaining their growth momentum. the last few months have witnessed a remarkable phenomenon. emes have, to use a word that has now become cliched, decoupled from advanced economies in a powerful way and started charting their own exit paths out of the crisis driven accommodative policies. even a few months ago, not many would have thought that this meant much or mattered much to the global economy. but now we know emes have made a “ difference ”. by recovering from the crisis sooner, emes have provided much needed stimulus to the global economy. to take a historical perspective, according to angus maddison ’ s long term gdp time series, china and india accounted for about half of the world gdp before the industrial revolution. since then their contribution declined to less than 10 per cent. rapid economic growth should help china and india to raise their per capita gdps, gradually bridging the gap with advanced economies, as japan, korea and singapore already have. that way they will provide diversified growth poles to the global economy and contribute to global economic prosperity. that emes can provide support to the global economy has been clearly demonstrated by our experience of the crisis. the great recession, for example, has been less deep than it would have been because of the growth contribution of emes, particularly china and india. and at the current juncture, when advanced economies are still experiencing a demand recession, it is the import demand from emes which is helping them make the necessary adjustment. in order to maintain their growth momentum, emes will need to address huge challenges and put in place both collective and individual country strategies. what these should be is by now quite well known. what the