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

Foreign exchangeSubscribe to Foreign exchange

Surging Reserves

Only greater stability and absorptive capacity can ensure productive use of funds.

IMF's Call for Complacence

The International Monetary Fund's World Economic Outlook of April 2016 bodes that emerging market economies, including India, are at risk of sudden capital outflows. The IMF once again makes a case for its conventional, much-discredited tools to manage this risk. To repeat these recommendations, that on many occasions have only worsened crises, is to encourage complacency.

Clearing Corporation Makes Its Mark

With the astronomical rise in the volume of transactions and multiple layers of financial operations, there is vast scope for reducing transaction costs and counterparty obligations and minimising financial risks by converting gross obligations into net. The Clearing Corporation of India Limited (CCIL) has assumed this role and within a little over a year has emerged as a major facilitator of transactions in gilt-edged debt, inter-bank forex market and money market instruments.

Secondary Market to the Fore

The growth of the financial market in 2002-03 was much more marked in the secondary market than in the primary segment. Turnover in all three components of the secondary market - equity, debt and forex - continued to grow apace.

Calcutta Diary

History marches on. Consider the colourless budget the union finance minister presented on the last day of last month. Even he could not but admit the sorry reality of the economy having come to a screeching halt.

Downward Rigidity of Indian Interest Rates

This paper tries to assess why lowering interest rates is proving to be hard in India. It highlights the role of three factors, namely high public debt and the structure of this debt, the overhang of non-performing assets, and the policy being pursued with respect to accumulation of foreign exchange reserves. These three factors are causally linked to each other and should not be looked upon as mutually exclusive contributors.
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