While RBI move to allow export/import to be invoiced in Indian rupee will solve some problems, there is no guarantee it will circumvent payment issues with Iran or Russia.
What ‘strong currency’ policy framers ignore is that almost every nation with a successful long-term record of development has pursued a ‘weak currency’ policy to win export markets.
The currency declined 2.2% this quarter as global funds pulled Rs 30,000 crore of capital out of India's stock market, the most among regional markets where data is available.
Govts, markets and societies alike will have to adjust and transform. Central bank digital currency’s entry is the onset of real fintech disruption, writes Neha Baid.
The move was taken to counter money laundering, terror financing risks associated with large denomination. Banks can continue to re-circulate existing notes deposited with them.
Now that $10 billion in subscription is unlikely to come in October, masala bonds, or rupee debt sold overseas to global investors, could be the solution.
Finance ministry says the proposed revamp will focus on structural reforms, rate rationalisation & ease of living, & will be deliberated upon in the coming weeks.
The project is meant to be a ‘protective shield that will keep expanding’, the PM said. It is on the lines of the ‘Golden Dome’ announced by Trump, it is learnt.
Now that both IAF and PAF have made formal claims of having shot down the other’s aircraft in the 87-hour war in May, we can ask a larger question: do such numbers really matter?
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