| inbluevt | Date: Thursday, 2013/08/22, 12:29 PM | Message # 1 | DMCA |
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India's imposition of capital controls shows how the prospect of a rollback of United States monetary policy is already starting a global war for capital.
India has launched a series of capital controls to help support the partially convertible rupee, which has been hammered 13 per cent lower this year and stands at an all-time low against the US dollar. Besides
limits on the amounts Indian individuals and business can shift out of the country, India on Monday banned the duty-free import of flat-screen televisions by airline passengers, a move that has the feel of clutching
at straws.
Financial markets have been unimpressed by the moves, which started earlier this year, accelerating a shift in the wrong direction as investors weigh the possibility of further capital controls.
Indian shares fell 0.7 per cent on Tuesday, and extended losses with a 1.86 per cent drop yesterday. The rupee hit a record low of 64.6 per US dollar yesterday, and the benchmark 10-year bond yield continued to
trade sharply lower, at 8.27 per cent.
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The country's finance officials are learning that money doesn't grow on trees, unlike in this foreign exchange shop in Bangalore. Photo: AP
Message edited by inbluevt - Thursday, 2013/08/22, 12:30 PM |
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