By Manoj Kumar
NEW DELHI
Mon Jul 22,
(Reuters) - India is considering calling on its millions of non-resident citizens to help reverse a record slide in the rupee and does not favour the idea of a global sovereign bond at this time, senior government officials told Reuters on Monday.
However, the government strongly denied having ruled out a sovereign bond issue and said in a statement that "all options are on the table".
The officials, who spoke earlier on condition of anonymity, said India was running out of options and time to revive the currency and fund a record current account deficit but equally policymakers were wary of sending any distress signals to international markets.
Issuing a global bond might send such a signal, so instead policymakers will focus on attracting funds from Indians living abroad, such as by raising deposit rates in India or issuing bonds specifically designed for them - repeating measures carried out in 1998 and 2000 to steady a weak rupee.
The officials declined to be identified because of the sensitivity of discussing government deliberations. They were not immediately reachable for further comment….
India has the second-largest diaspora in the world, with a community estimated at more than 25 million, the Ministry of Overseas Indian Affairs says….
The Indian Govt is desperate to defend the weakening rupee and is expecting some help from the Indian diaspora around the world. One key factor that is leading the Indian Govt to this crisis is the lack of finance talents in India. Practically all their banking and finance talents are in the US and Europe and of course in Singapore. This is a costly brain drain, depleting whatever talents India has. It is now paying a price for losing its own talents who are out there helping the countries around the world to manage their finance and bankings.
How many of these finance talents are going to return to India to give a helping hand? Throwing some money back is not going to do much good. What India really needs is to bring back some of these top talents to save the country.
Singapore is so fortunate to benefit from India’s despair. We are taking too many of India’s talents to help us grow into the First World. Singaporeans should be very grateful for this and maybe Singapore should reciprocate in some ways to help India. Maybe we can loan some of the ex Indian Singaporean finance experts to get India over this crisis. For a start, a true blue Singaporean, the recently retired Dhanabalan, can be loan to the Indian Govt as Special Economic and Finance Adviser Emeritus.
TH and GIC invested a lot of monies there. This currency deflation will affect the balance sheet / income statement. Prepare for the next round of screwing the sink people.
ReplyDeleteNot to worry lah! The US vice president, Joe Biden, is now in India. Maybe he can help. Just bring some of his country's banana money over to bribe the Indians. It is just a matter of printing as much as they want, from thin air.
ReplyDeleteBut, as most people know, his visit is probably to convince the Indians to tickle the Chinese and start another skirmish on China's western front, so that China is now surrounded by enemies on all sides.
As the late Venezuelan Chavez used to say, wherever Satan goes, the smell of suphur is in the air.
What good do you think Joe Biden's visist to India will bring to Asia is something I think most people will be able to guess.
All Indians are finance experts.
ReplyDeleteCannot. If we lend them our Indian experts our banking industry will collapse.
ReplyDelete'All Indians are finance experts.'
ReplyDelete- do not make me laugh. they cannot even build anything properly, how to 'finance' properly?
Cannot. If we lend them our Indian experts our banking industry will collapse.
ReplyDeleteOh dear. In that case maybe we can lend them our Ho Jinx?
Her track record of compounding 17% annual growth rate in assets will surely help India.
Off-topic
ReplyDelete----------
But did you see Lim Boon Heng cry when he was appointed Chairman of Temasek Holdings?
poor thing.
very hard work.
serving pap (I mean Singapore).
As Chairman, it's a heavy responsibility to oversee every investment Temasek makes.
ReplyDeleteThe rubber stamp for "approved" is a very heavy cross to bear.
Just ask Dhana.
He carry the responsibility for so long, he is 8 inches shorter than the average Sinkie.
India's rupee plunge is a good thing. It has a lot to do with people buying gold and dumping rupee
ReplyDeleteIn short, the government is having a bad policies of fiat monies and Indians are smart enough to bank run fiat and buy gold.
Hence GOI impose more stupid restriction on gold. A rush for gold is actually a bank run on fiat, that will cause fiat to drop like nobody and prevent central bank from stealing our labor.
The day Singaporeans buy gold and bankrun SGD, you will see all our banks and MAS go bankrupt and our property price adjusted back to 2-3 years of our average annual income.
As I always put it, MAS is the root of all evil and plunder in SG.
Dhana being made retired and India rupee plunge is linked. Big screwed up there so now have to get a chinese to clean up the shit again.
ReplyDelete