Sir, did full current
account convertibility helped increase/decrease the foreign exchanges reserves
of India? Our forex reserves increased tremendously, but what is the role of
full current account convertibility in it?
Interesting question!!
The forex reserves have been
mostly from the FIIs.
And remittances, which kept on
increasing.
So, one can say that, it did improve
on the remittances.
But then, with the falling rupee
and less investment proposals across the globe, increase in remittances is
hardly a surprise!
So, we can say that, CrA may have
done less good, but no harm!!
CrA is the precursor to CA
convertibility!
Ok Sir. If at all CrA
played a role, what/how could it be? Increase in confidence of investors/migrants?
CrA is a limited factor.
Only for migrants. Investors will
look for CA convertibility.
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