2 edition of Capital account convertibility found in the catalog.
|Statement||UBS Publishers Distributors|
|Publishers||UBS Publishers Distributors|
|The Physical Object|
|Pagination||xvi, 74 p. :|
|Number of Pages||63|
Collection of lectures given at various forum. File Size: 8MB.
In 2021, INR contracts traded against the dollar an average of 16,784 times per day compared to 162,338 contracts converted from Euro to USD. During the mid-1990s, the rupee was fully made current account convertible for all trading activities, remittances, and indivisibles.
Free and open entry to an enormous number of global market participants would increase the risk of losing regulatory control due to large market size and a huge flow of capital.
The volatility in exchange and interest rates in the wake of capital inflows can lead to unsound funding and large unhedged foreign liabilities. You may Capital account convertibility to the circular. Trade oriented development strategy must be adopted before-hand along with sufficient incentives by the government for the growth of exports.
Excessive inflows and outflows should be buffered by to provide collateral. It allows free cross-border movement of those currencies, without the interventions of the law of the country concerned. While there has been a substantial relaxation of foreign exchange controls during the last 10 years, the current account convertibility since 1994 means that both resident Indians and corporate have easy access to foreign exchange for a variety of reasons like education, health and travel.
By 1991 around 80 countries had introduced currency convertibility on current account.
Drawbacks of CAC : 1.
" Accessed April 24, 2021.
So, capital flows-of all kinds-have a varied, but definite impact.