Talking to FinMin to launch inflation-indexed bonds: HR Khan

Nov 27 2012, 20:56 IST
Comments 0
The Reserve Bank is in talks with the Finance Ministry for launching inflation-indexed bonds, which can help reduce physical demand for gold, Deputy Governor H R Khan said here today. (Reuters) The Reserve Bank is in talks with the Finance Ministry for launching inflation-indexed bonds, which can help reduce physical demand for gold, Deputy Governor H R Khan said here today. (Reuters)
SummaryThe Reserve Bank is in talks with the Finance Ministry for launching inflation-indexed bonds, which can help reduce physical demand for gold, Deputy Governor H R Khan said here today.

macroeconomic stress.

"High gold import is creating some macroeconomic stresses and so the challenge is to find ways to replicate the financial characteristics of gold without necessarily causing physically importing," Gokarn had said.

Gokarn had also said an RBI working group head by KUB Rao would shortly submit a report on the ways to deal with the problem arising from high gold imports on the macroeconomic front in the from of balance of payments.

Gokarn had said while global gold output has stayed stable at around 4,000 tonne per year, domestic consumption has doubled to 1,000 tonne annually since 1999, despite a massive rally in the prices.

Last fiscal there was a 39 percent rise in gold imports and in gross terms, constituting 80 percent of the CAD of 4.2 percent of GDP. Net gold import constituted 1.8-2.4 percent of GDP.

Single Page Format
Ads by Google
Reader´s Comments
| Post a Comment
Please Wait while comments are loading...