Economic crisis in India 2013 | ALL Updates & News

[Chinese-Dragon]

Soros is indeed the man who broke the bank of England.

Damn, with people like George Soros around, it makes me happy that the RMB is on a "managed floating" exchange rate, rather than a free-floating one.

What is the cause for this free fall , if I can get a brief idea ?

People lost confidence in the Rupee, due to poor economic fundamentals such as a large and persistent current account deficit, high debt-to-GDP ratio and a massive fiscal deficit. Not to mention slowing growth and rising unemployment.

The worst thing though, is when the Indian government tried to save the Rupee using half-measures. That just looked desperate, and the markets took it as a sign of panic and a chronic inability to fix the problems.

When trying to intervene in currency markets, you really have to go full-measures, and the Indian Congress government doesn't seem to be able to do that. More importantly you need structural reforms to fix the economic fundamentals.

 

[faithfulguy]

I do agree that our current condition is bad but i think its also hyped up! so lets wait and watch.

What are you doing here? Did you already returned from the jewelry shop? Most Indian members are waiting in line at the jewelry shop trying to convert their Rupees to any thing they sell there.

 

[SarthakGanguly]

Just tabled. I expect it to be passed. BJP will probably walk out. I hope at least they stay and vote 'No'. The corrupt folks will all go for it. Milking the system is the easiest way to get rich. Any public distribution system and freebies are breeding grounds for corruption.

Was food bill passed? If it was, there's more bad news for the INR

 

[Chinese-Dragon]

@by78

Please post all these articles on INR in a single unified thread .

Yep we need to consolidate the threads a bit more for easier reading.

 

[by78]

@by78

Please post all these articles on INR in a single unified thread .

My opinion on this that we should probably keep these articles in individual threads, for now. Since events are accelerating, with each new article marking a milestone, I think separate threads are best. I just don't want these updates buried by regular discussions within a thread.

When things stabilize a bit, aggregating them into a single thread would be good.

Just my two cents.

 

[Sugarcane]

We won we completed century first

 

[by78]

Rupee falls to new low, extends losses to 64.02 against dollar - The Times of India


MUMBAI: The rupee slumped to a record low in early trade on Tuesday as the currency continued to bear the brunt of a large current account deficit and fears of tapering of the monetary stimulus by the US Federal Reserve on the rise.

The rupee fell to as much as 63.78 to the dollar, breaching its previous low of 63.30 seen on Monday. It had closed at 63.13/14.

Bond yields surged with the 10-year yield surging 15 basis points to 9.38 percent.

****, the bond yields... wow...

Once the yields get to north of double-digit, damn.

India cannot afford to pay these yields.

 

[by78]

Damn, with people like George Soros around, it makes me happy that the RMB is on a "managed floating" exchange rate, rather than a free-floating one.



People lost confidence in the Rupee, due to poor economic fundamentals such as a large and persistent current account deficit, high debt-to-GDP ratio and a massive fiscal deficit. Not to mention slowing growth and rising unemployment.

The worst thing though, is when the Indian government tried to save the Rupee using half-measures. That just looked desperate, and the markets took it as a sign of panic and a chronic inability to fix the problems.

When trying to intervene in currency markets, you really have to go full-measures, and the Indian Congress government doesn't seem to be able to do that. More importantly you need structural reforms to fix the economic fundamentals.

India couldn't go full measures because it hasn't got the forex reserves with which to defend the currency, and demand for its bonds is simply nowhere near the level is needed to shore up the Rupee.

 

[SarthakGanguly]

The FOREX reserves are in some Swiss Bank.

India couldn't go full measures because it hasn't got the forex reserves with which to defend the currency, and demand for its bonds is simply nowhere near the level is needed to shore up the Rupee.

 

[Chinese-Dragon]

India couldn't go full measures because it hasn't got the forex reserves with which to defend the currency, and demand for its bonds is simply nowhere near the level is needed to shore up the Rupee.

Yes I read in a recent article posted here that India only has enough Forex to cover 7-months of imports, leaving them with nothing to defend the currency.

Not to mention that India's Forex is currently lower than their Foreign debt, which is a huge risk.

And it will keep getting worse until the Indian Government decides to implement wide-ranging structural reforms.

 

[by78]

Yes I read in a recent article posted here that India only has enough Forex to cover 7-months of imports, leaving them with nothing to defend the currency.

Not to mention that India's Forex is currently lower than their Foreign debt, which is a huge risk.

And it will keep getting worse until the Indian Government decides to implement wide-ranging structural reforms.

It's down to less than six months. Three months is the psychological minimum, so to speak, before seriously considering a bailout.

 

[Secur]

It's down to less than six months. Three months is the psychological minimum, so to speak, before seriously considering a bailout.

Rupee fall: How Gulf-based NRIs are making money - NDTVProfit.com

Dubai: Indian expatriates in Oman and other Gulf Cooperation Council (GCC) countries have started taking personal loans in a bid to take advantage of a record fall in the value of Indian rupee against local currencies, a report said.

Money exchangers and bankers in Muscat said that non-resident Indians or NRIs have started resorting to personal loans as rupee touched an all-time low of 62.03 against the US dollar on Friday, a newspaper from the region reported. The Indian rupee of Monday continued to bleed as it touched a fresh low of 63.22 on Monday.

Exchange houses in Oman were offered Rs. 160 for an Omani riyal on Friday. The rate continued for three days as foreign exchange market is closed on Saturday and Sunday.

"Indian expatriates started taking personal loan for remitting money back home," said Rajeev V G, general manager of Global Money Exchange, which is managed by the State Bank of Travancore.

"We have witnessed a substantial increase in remittance and high-volume transactions, which is a clear indication that expatriates are taking loan for arranging funds for remitting money," another exchange official said, adding that there has been a 10-15 per cent growth in remittance on Friday over the previous day.

Since rupee's value crossed the Rs. 154-155 level against the riyal, NRIs in Oman started remitting their savings.

The Central Bank of Oman or CBO has also started taking measures to find out the sources of funds for foreign remittance.

Those who remit above 2,000 Omani riyals will have to produce proof showing that the money was withdrawn from their own bank account. Earlier, this was required only for amounts above 5,000 riyals.

The country has recently made it mandatory to credit employee salary only through a bank so that there is a check on sources of income.

Money exchanges in Oman also submit a report with details of different ranges of remittance transactions to various countries on a monthly basis to the CBO.

 

[Alfa-Fighter]

Boon in disguise , now things will be manufactured in India , instead of import. like mobile, TV , and tablets and laptops.

 

[Chinese-Dragon]

Rupee fall: How Gulf-based NRIs are making money - NDTVProfit.com

Dubai: Indian expatriates in Oman and other Gulf Cooperation Council (GCC) countries have started taking personal loans in a bid to take advantage of a record fall in the value of Indian rupee against local currencies, a report said.

"Indian expatriates started taking personal loan for remitting money back home," said Rajeev V G, general manager of Global Money Exchange, which is managed by the State Bank of Travancore.

Man those Indian expatriates are taking LOANS in order to take advantage of the fall of the Rupee?

Well, it's not the worst idea, as long as they are capable of paying it back.

Boon in disguise , now things will be manufactured in India , instead of import. like mobile, TV , and tablets and laptops.

The problem is that India is not a net surplus nation. In fact India has a very large trade deficit.

In order to manufacture things, you need to import. You need to import raw materials, you need to import components, you need to import everything.

And you need to import oil, which raises prices in the entire economy, making everything more expensive. In the end, how can your manufactured products be competitively priced if all the inputs have become more expensive?

 

[Ayush]

We won we completed century first

the real competition is seeing who gets back to 50 first..