Currency cul-de-sac

The government needs to pursue alternatives to expensive energy imports from spot markets
Comment E-mail Print Share
First Published: Tue, Jul 09 2013. 11 20 PM IST
The rupee’s continued beating has left Indian authorities, the government as well as the central bank without any clear-cut options for action. Photo: Mint
The rupee’s continued beating has left Indian authorities, the government as well as the central bank without any clear-cut options for action. Photo: Mint
The rupee’s continued beating has left Indian authorities, the government as well as the central bank without any clear-cut options for action. Apart from knee-jerk reactions—such as banning banks from proprietary trading in currency futures and ad hoc raising of duties on import of gold—there is little systematic action.
 One can argue as to where the room for systematic options lies. That’s a function of looking hard enough.
 The one area where the government needs to take action is to pursue alternatives to expensive energy imports from spot markets. Oil marketing companies, to give one example, suck out almost $300 million on average every day largely for spot purchases. This cannot be ended in a day. But clearly India being largely locked out of long-term oil deals is hurting now. Apart from reasonable domestic price corrections, the government can no longer afford to ignore long-term oil contracts.
Comment E-mail Print Share
First Published: Tue, Jul 09 2013. 11 20 PM IST
More Topics: rupee | currency | India | oil imports | gold |
blog comments powered by Disqus
  • Wed, Nov 19 2014. 04 58 PM
  • Wed, Nov 12 2014. 05 13 PM
Subscribe |  Contact Us  |  mint Code  |  Privacy policy  |  Terms of Use  |  Advertising  |  Mint Apps  |  About HT Media  |  Jobs
Contact Us
Copyright © 2014 HT Media All Rights Reserved