RBI reaches for capital controls

By and large, I have felt that RBI has done a pretty good job of the exchange rate. They doubled currency flexibility twice, in 2004 and 2007. In 2009, they shifted to a floating rate. There were two problems:

They continue to sometimes do tiny blocks of trading on the currency market. In a . . . → Read More: RBI reaches for capital controls

What in the world is happening to the rupee?

The INR/USD rate is now nudging Rs.50 to the dollar. This is a big move over a short period: a depreciation of 12.1 per cent over the 84 days from 1 July till 23 September.

What fluctuations of the INR/USD can we reasonably expect?

After the rupee became a float, so far, it has . . . → Read More: What in the world is happening to the rupee?

Addressing the Problems of Rupeezone

While everyone is pondering the ways in which Eurozone is not an optimal currency area, I found myself worrying about the ways in which Rupeezone is not an optimal currency area. In the Financial Express today, I have a column: Addressing the problems of Rupeezone.

Here are interesting materials on Greece which set the . . . → Read More: Addressing the Problems of Rupeezone

HR 4248 Free Competition In Currency Act Of 2009

On 9 December 2009 Representative Ron Paul introduced H.R. 4248 the Free Competition in Currency Act of 2009. ┬áThis Act has the potential to impact the investment world more than any other legislation that has been enacted for decades. ┬áThe impact on the bond market, Treasury market, stock market and general economy would be . . . → Read More: HR 4248 Free Competition In Currency Act Of 2009

China’s Currency Policy and Yuan Revaluation

The Economist published a thorough discussion (link) of China’s currency policy and reasons why yuan is unlikely to re-valuate any soon.

Hawala Banking And Currency Controls Part I

On HowToVanish many people have been asking questions in response to an article I posted about hawala banking. It is a great topic and one that I enjoy talking about so I thought I would respond by fleshing out what kinds of transactions take place in a hawala system and then answer the biggest . . . → Read More: Hawala Banking And Currency Controls Part I