The News Review:
- Forex trade goes haywire
- Forex reserves rise to $313 bn
- Daily Times - Site Edition
Forex trade goes haywire
Economic Times - May 17, 2008
For retail customers, the levy makes buying and selling forex more
expensive as most banks have hiked rates on transactions. However, confusion
prevailed in the wholesale part of the business, which constitutes over 60% of
foreign exchange sales in India. Several dealers in Mumbai suspended business,
awaiting clarity on the levy. The notification issued by CBDT says
both ends of the forex transaction?buying and selling?would be
taxed, on the lines of the securities transaction tax, which is applicable on
stock market trades.
Forex reserves rise to $313 bn
Economic Times - May 17, 2008
Forex reserves rose only $200 million in
the latest week ended May 9. After two consecutive weeks of a dip in the
reserves pile-up, foreign exchange reserves rose only $200 million to touch
$312. 7 billion during the week ended May 9. The entire growth in reserves during
the week has been on account of growth in foreign currency
assets.
Daily Times - Site Edition
Daily Times - May 17, 2008
“The Treasury report highlighted that China’s currency undervaluation is creating risks “for itself, the Asian region and the world economy in which China is playing a greater role. “”Chinese exchange-rate practices justifiably remain a focal point for the international community. “It underscored that China’s ‘rigid’ forex policy “continues to support large-scale domestic liquidity creation, which threatens monetary and price stability,” and urged China to “intensify its efforts to rebalance its economy. “Specifically, the Treasury recommended that China boost domestic demand and consumption-led growth, reform its financial system, and achieve “greater monetary policy autonomy” through rapid yuan appreciation and “greater flexibility” of its forex regime. The Treasury said it has frequently and regularly been “reinforcing” its forex message to Chinese authorities “and will continue to do so. ” The report mainly focuses on international economic and forex developments in the second half of 2007 for the most part, but includes some data through mid-April. Regarding the euro, the currency of 15 European Union member nations, the Treasury noted that its value is “market-determined” and its exchange rate with the dollar “has, at times, experienced sharp fluctuations.