The Indian Rupee Continues to Make New Low [Rs 64 in Todays Trade] against the US Dollar as the Finance Minister and his Cabinet Colleagues Continue to Govern Arrogantly without accepting the fact that they have performed the Worst. Foreign investors withdrew over $8 Bn in the Last Two Months as the Thugs of the Indian Government do not seem to understand the Economic Situation and are sticking to only one point Agenda of Social Spending[ Food Security, Rs 1 / Kg Rice etc] to Get Votes in the forthcoming elections.
Here are the moves by the Government that Led to the Collapse of the Indian Rupee and they are now shamelessly headed towards IMF for a Bailout Package.
June 4: Import of gold on consignment basis restricted [Stupid & Headless Govt of India Must Understand that Gold & Silver Investments by Indians is Mostly BlackMoney and it is done as a Cover against Double Digit Inflation and Single Digit Bank Fixed Deposit Rates]
June 5: Import duty on gold hiked to 8%.
July 8: SEBI tightens rules on FX derivatives trading, doubling loss margins for USD/INR contracts; RBI bars banks from proprietary
trading in FX futures, exchange-traded FX options.
July 15: RBI raises both marginal standing facility and bank rate to 10.25% from 8.25%; caps daily lending under liquidity adjustment facility (LAF) to 1% of bank book and announces bond sale through open-market operations.
July 22: RBI rationalized import of gold by making it incumbent on all nominated banks/entities to ensure that at least one fifth of imported gold is exclusively made available for the purpose of exports. Any import of gold under any type of scheme will have to follow this 20/80 formula.
July 23: RBI further limits banks’ access to cash under LAF to 0.5% of net demand and time liabilities; raises daily balance requirement under cash reserve ratio to 99% vs 70% effective July 27; announces Rs60bn auction of cash-management bills.
Aug 08: RBI announces plan to sell Rs220b rupees of cash management bills each week. [RBI thinks sucking Liquidity out will Help INR, instead he should have told the Finance minister & Prime minister to Stop Lip Service and Do some Real Service to the Nation]
Aug 13: Government raises import duties on gold and platinum to 10% from 8%, silver to 10% from 6%.
Aug 14: RBI cuts the amount local companies can invest overseas without needing approval to 100% of their net worth from 400%;
residents can remit $75,000/yr abroad vs $200,000 earlier. It exempts additional foreign-currency deposits held locally by Indians living abroad from banks’ cash reserve ratio and statutory liquidity ratio requirements. RBI also further tightens gold-import rules, saying imported bullion to be supplied to domestic users against full upfront payment.