|
RBI mulls alternative financial instruments
to gold
Thursday July 12, 2012 07:08:01 PM,
IANS
|
|
|
|
|
Kolkata: The Reserve
Bank of India (RBI) is mulling floating financial instruments that
mimic returns on gold to curb the current account deficit, Deputy
Governor Anand Sinha said Thursday.
Gold imports have contributed substantially to India's current
account deficit (CAD), which is the difference between total
imports and transfers and total exports, which widened to the
highest ever level to 4.5 per cent of the gross domestic product
at $21.7 billion in January-March period of 2011-12.
"Gold imports have been a very substantial part of the current
account deficit. Therefore, it is being looked at what best can be
done. Import is one aspect, the other aspect is that the gold that
is already existing in the country can be brought out to satisfy
the demand by devising financial instruments which can mimic the
returns on gold," said Sinha.
"Several proposals are there. There is a committee which is
looking into all these aspects," he told reporters on the
sidelines of a programme organised by the Indian Chamber of
Commerce (ICC) here.
The central bank, however, has no plan to ban gold coins, Sinha
added.
|
|
Home |
Top of the Page
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comments
|
Quick links