Management of Foreign Currency

Indian Government Management of  Foreign currency is in doldrum as its facing problems of Current Account Deficits[CAD], Negative Terms of Trade, etc. The Finance Minister was in United States to convince the CEO's of the big companies to come and invest in India. Now, he's meeting the Foreign Banks the pioneer's of Fund Management to study ways and means plus expressing the interest of  issuing "Foreign Bond".

Indian Government is trying to Manage funds directly or indirectly with the help of Indian Banks to raise loans outside like Soverign Bonds. Indian Development Bonds was issued in 1991, to Manage the Balance of Payment crisis. Offered 9% interest and paid about USD$ 2.2 billion in one shot.

Resurgent India Bonds gave us USD$ 5 Billion, which was floated by State Bank of India in 1998. This was done to Manage the wrath of Pokran Nuclear test - II. Purely offered 7.5% interest rate. Indian Millenium Deposits garnered in USD$ 5 Billion, which was issued in 2001. It carried an Interest Rate ranging from 6.5% to 8.5% depending on the currency you're investing. Management is the real funda.

New Bond which is going to be issued in 2013 will be fetching the Interest Rate of near to 5% - 7% depending on the currency. Other option left is to use the Debt Management to the full. Indian Government can tap in Non-Resident Diaspro to invest in India, which will be covering the imports for the whole year. Now it's standing at USD$ 285 Billion, which will be Managing at least seven months.

Keyword: Management; Managing

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