Saturday, August 10, 2013

What India will do next?

3 billion dollars foreign exchange is lost within a week from RBI's kitty. The problem is very serious. This is evident from the fact that the RBI is trying to drain the liquidity from the system. The 22000 Cr auction is necessitated because of this fear.  Now also all is not lost. Raise the Repo and CRR by 2% each. Everything would be solved.

However, I think the government next course of action would be:

1. Banning short selling in currency
2. Banning short selling in equities
3. Can snatch the dollars from traveller coming back from abraod at airport itself :)
4. Passing a law to make car purchase compulsory for all Indians ( Aadhaar card would be used for this). Government want poor car companies also to survive.
5. Another scheme for compulsory going for housing loans and apartments is under purview of Chidambaram.

1 comment :

  1. Mango,
    The government already know their chances to return to power in next year election is slim.So rest assured no serious steps to correct the situation will be taken.Only soft peddling will happen to maintain statusquoie such increase custom duty,increase NRI interest rate,etc.It is also possible that they will call early election at short notice before everything blows up in their face.