Readings: RBI on Rupee Futures, Gold ETF Impact, Realigning the yuan
- Reserve Bank of India: Report on Currency Futures for Public Comments
The Reserve Bank of India today placed on its website the Report of the Internal Group on Currency Futures for public comments. The Working Group had been set up following an announcement in the Annual Policy Statement for 2007-08 to suggest a suitable framework to operationalise the proposal to introduce currency futures in line with the current legal and regulatory framework. The Reserve Bank had, on October 30, 2007 announced in its Mid term Review of the Annual Policy that it would release the draft report for comments (para 136).
Let’s see how long it takes for us to be able to trade rupee:dollar futures. Given that the DGCX in Dubai already offers rupee futures, we better hurry up.
- Adam Hamilton, Zeal LLC: Gold ETF Impact 3
If GLD (StreetTracks Gold Shares ETF) was a central bank, it would nearly make the top 10 in the world for gold holdings. This single American gold ETF has more gold than 100 individual central banks. GLD is just a hair away from overtaking China too, which would give it the 10th spot.
Compared to GLD, the size & trading volumes of gold ETFs in India are still abysmal, given our preference for holding the actual metal in the form of coins, bars & jewelry.
Beijing suppresses the value of its currency, keeping its exports cheap. That policy has helped create a U.S. trade gap with China that reached $23.8 billion in October alone. And the euro zone’s trade gap with China surged 25 percent this year, reaching €70 billion through August, . . .
For the first time, the G-7 communiqué from Washington in October singled out China as the country that needed to free up its exchange rate, which would allow its currency to appreciate, and ease the trade gap.
What if China were to quicky re-value the yuan upwards? Would the Indian exporters then be willing to live with a further rise in the rupee?
Related Posts:
