Forex
Rising Rupee - Boon or Bane? -- K Seethapathi , T Jyotsna
Indian goods are becoming more expensive in US, and the American goods are becoming cheaper in India. This is in the light of the rupee surging ahead against the dollar for past few months. There are varied reasons for this behavior of the rupee. Certainly, the rupee's rise would have a pronounced effect on the country's Balance of Payments position. Also the increasing foreign exchange reserves and the current account surplus have become a matter of concern to the economists. To know the reasons for the rupee's rise and its implications on the BoP, read on.
© IUP. All Rights Reserved.
Surging Forex Reserves - A Cautious Step Towards CAC
-- N Rajshekar , V Subbulakshmi
Over the recent past, India has witnessed a considerable rise in its foreign exchange reserves. There has been an excess of dollar inflows when compared to the outflows. The huge dollar reserves may allow India to move towards full convertibility as recommended by SS Tarapore committee. But India may have to weigh its own options as most of the Latin American countries had witnessed the same kind of situation in the past. What are the implications of full convertibility? What have been the causes for growth in the value of the Indian rupee? Read on.
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Forex Reserves : How Much is too Much?
-- T S Ramakrishna Rao , C Sanjay
Of late, India has witnessed a mammoth inflow of foreign exchange reserves. From a scary situation once upon a time, India now sits pretty on a huge pile of reserves that have hit a record high. Although these reserves provide comfort in managing any kind of external shocks, they have a certain amount of cost associated with them. Does India hold appropriate amount of reserves to suffice import payments? What are the implications of superfluous reserves? What steps should the RBI take in this direction? Know more from this article.
© IUP. All Rights Reserved.
Risk
Dollar's Wane is Gold's Gain -- G Alivelu
Ages have passed, but the yellow metal still remains unfaded keeping its glitter intact. Gold happens to be the oldest monetary standard of the world and is considered as the preserver of wealth for its relatively consistent price parity with other commodities all through history. Recent times have witnessed a great surge in gold prices, which is dictated more by the existing demand and supply conditions. The decline in the value of the US dollar can also be considered as one of the reasons for the surge.
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Treasury
A Statistical Overview of CHAPS Sterling -- Kevin R James
CHAPS Sterling handles sterling denominated inter-bank payments and can be considered as one of the major components of the UK financial system's infrastructure. It is a RTGS system, acting as a central clearinghouse for a network of private payment systems run by individual banks. This article provides a statistical overview of the payment system upon payment activity, liquidity position and concentration risk that the banks face. The evidence suggests that failure on the part of a bank may not prevent the remaining healthy banks from making payments to each other.
© Bank of England, reproduced from the Financial Stability Review. Reprinted with permission.
The Third Dimension of Cash
Management: Eliminating Volatality
-- Mark Beard
Maintaining liquid cash always helps organizations to take care of their sudden financial needs and unforeseen events. But in this fast-paced world, this strategy is proving to be inefficient as it might leave a company with larger cash balances than what might be required. There is no way by which a treasurer can determine the amount of cash that the company requires and at times, may end up leaving huge amounts of cash unutilized. There are many successful ways by which treasurers can eliminate this volatility. What are they?
© 2003, GTNews-www.gtnews.com. Reprinted with permission. |
