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

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Open-Sesame for Foreign Banks and MNCs

Open-Sesame for Foreign Banks and MNCs? (By a Special Correspondent) THE Reserve Bank of India appears to be on a liberalisation spree. The new toy it wants to develop is the exchange market of India with a view to making it a link in the heady international exchange market which is increasingly enveloping the world and opening up miracle avenues for international banks to make easy profits through unproductive exchange trading operations. The recent gyrations in the exchange rates of major currencies is in no small measure due to the trading activities of multinational banks, too often aided and abetted by the central banks of countries which have limited scope for raising their national income through production of real goods and services, The argument of the RBI seems to run follows : Have not Singapore, Hong Kong and Bahrain managed to secure a handsome slice of the profits from foreign exchange trading? Colombo, right next door, is also on the way to developing as another link in the international money spinning racket. Why then not Bombay too?

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