ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Procurement-Wot, No Records-of-Rights

 fluence to the philosophy of permitting relatively free flows of capital, will once again face massive speculative capital inflows despite the half-hearted attempt to curb such flows through the 100 per cent deposit requirement with the Bundesbank in respect of non-resident deposits. Such measures, or the threat held out by the Deutsche Bank to charge 10 per cent negative interest on non-resident deposits, are unlikely to deter speculators, since the potential gain from the massive capital flows will take care of all such paltry costs. The speculators have already gained over $ 780 million when they moved $ 6 billion into West Germany before the latest dollar devaluation. As they are still convinced that the mark can be pushed upwards further, there is likely to be a rush to push in speculative capital into the countries participating in the mini-float. Secondly, as the gains will be higher to those that are the earliest to secure positions in the mini-float currencies

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