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

Money Markets

Money Markets
There has been a sharp appreciation in the value of the rupee against the dollar in recent weeks, a change in policy track from the tightrope walk of promoting export competitiveness while holding...
The Basel II norms, which will cover all banks by March 2009, will introduce tightly controlled and comprehensive coverage of risks that could militate against financial inclusion. The norms may not...
The indirect measures taken by the central bank to control inflation have led to a situation where banks are pushing up rates on both deposits and loans, more on the latter than on the former, ending...
The developments in the call money market in December 2006 have exposed the tenuous nature of the financial markets in a possible environment of liquidity shortages. A considerably unequal...
Annual turnover in five financial markets is now equivalent to more than 300 per cent of GDP. Across the gilt, forex, equity, derivatives and commodity futures markets, an easy policy environment has...
Credit delivery to the farm and informal sectors has deteriorated because the institutional structures have been allowed to weaken. The latest example is the curtailment of the refinancing...
Successive governments have failed to adopt a macroeconomic perspective that allows for flexibility in the application of reform measures, a failure which is proving to be a hurdle in achieving...
Interest rate deregulation has led to skyrocketing costs of borrowing for informal sector borrowers and also a relative decline in credit delivery. There is evidence that it is the informal sector...
Increases in yields on government securities are indicative of a dear money policy of the central bank, which has decided to base its actions on market signals and on assigning "more weight to global...
During the past couple of years or so, the economic system has been readjusting itself to the new congenial financial sector environment of a relatively soft interest rate. Therefore, the current...
The RBI's avowed objective has been to progressively deregulate the financial system to allow it to operate in an environment of competition and efficiency. But, the system cannot be oblivious of its...
With the RBI now prohibited from participating in the primary issues of government securities, the management of liquidity has become a more delicate and complex task. In this context, the RBI has...
The acute liquidity shortage occasioned by the Rs 32,000 crore redemption of India Millennium Deposits last December raises the larger question of the need for the RBI to be ready to inject funds...
The dispute between the finance ministry and the Planning Commission on the fiscal deficit for 2006-07 is indicative of the dilemmas that the government now finds itself in, after the passage of the...
The new indices of nominal and effective exchange rates of the rupee have been thoughtfully constructed and have been expanded rather significantly in their scope and coverage. What stands out in the...

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