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It might be surprising for you to learn, but the stock exchanges are far from being the worlds largest financial market even though the media gives ...
It might be surprising for you to learn, but the stock exchanges are far from being the worlds largest financial market even though the media gives ...
In its bid to contain its inflation rate the Reserve Bank Of India (RBI) will not interfere in its foreign exchange market. Although there has been huge investments by foreign investors, the funds flown in have not been added to the foreign exchange kitty of the bank.
According to the latest RBI data, August-October has seen almost $8 bn FIIs have been invested in the country. Of this amount nearly $ 336 million has been absorbed by the regulator, while the others were sold in the forwards market.
Apart from the FII inflows, money has also been coming in through ECb’s, FDI, remittances and export earnings. The market however has a huge dollar demand especially from investors and importers who are looking at repatriate profits.
With this the RBI can afford to control the economy’s inflation. This is by buying fewer dollars which results in a lesser amount of rupee funds that are put into the market.
The RBI is attempting to take care of the excessive liquidity in the system, as the demand for credit among people has reduced. There has however an excess of Rs, 50,000 crore that is lying as excess funds.
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SA clears DiData deal
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Tax and exchange: control implications of emigration he will be gist to the exchange control regulations. The unutilised foreign investment/capital allowance of up to R4 million per natural yourself over |
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