Financial Daily from THE HINDU group of publications
Monday, Feb 02, 2004

News
Features
Stocks
Cross Currency
Shipping
Archives
Google

Group Sites

Opinion - Letters


Forex reserves

There has been no let-up in the surge in forex reserves. Remittances (unrequited transfers) are an important contributory factor.

Since the Lok Sabha election is due shortly one may expect the trend to continue.

If the trend continues, the level of reserves is likely to reach around $120-$125 billion before the elections are held.

The Reserve Bank of India has a massive task on hand to sterilise the inflows.

The price level has already started shooting up and it is not good news for the parties in power.

It may cancel the effect of the "feel good" factor.

Since forex is no longer a constraint the timely management of the supply side of the economy through imports, wherever necessary, should help in containing the rise.

A. Seshan

e-mail

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

More Stories on : Letters | Forex

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
More power to paperless trade


Time to give a thrust to growth policies
Jobless recovery in US — World staring down a gun barrel
Capital account convertibility — Carefully-calibrated approach needed
Capital guaranteed funds — Fixed-income market needs to change
Gathering storm
`Hyper competition is about leveraging weaknesses' — Prof Richard D'Aveni, Amos Tuck Business School, Dartmouth College, US
IFCI merger
Forex reserves



The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line