Risk Management and Inter Bank Dealings

This will be big news in today’s papers (posting around midnight AM) – RBI’s promulgation of capital controls to reign in the currency movement. There is a meeeting there in the RBI today for a review of its monetary, so some more interesting sound bytes should come out. What if they cut the CRR?

And Ajay Shah provides a contra view to RBI’s action. Boy! If I have to pick between the short term bounce up generated by a possible CRR cut and the medium term lower levels of NIFTY as mentioned in Ajay Shah’s post, I’d pick the latter.

BTW, at one point in time yesterday RBI’s legal tender was quoting at 54.29 times a USD! Can’t believe it. Sort term relief for exporters? Only if they prevent losing their margins to local inflation.