ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Odd Move

Odd Move THE gold reserves have been revalued in pursuance of the ordinance promulgated to this effect on October 15, amending the Reserve Bank of India Act, 1934. Hitherto, gold reserves were being valued at the fixed rate of Rs 84.39 per 10 grams, now they will be valued at the ruling international price. As a start, they have been revalued at the rate of Rs 1,991.64 per 10 grams. This has meant a nominal increase in the rupee value of our gold reserves of the order of Rs 6,350 crore. It cannot be sheer coincidence that the promulgation of the ordinance on revaluation of gold followed a steep decline in the country's foreign currency reserve, which reached an all time low of Rs 3,835 crore on October 12. Of the depletion in foreign currency reserves during the current financial year of Rs 1,952 crore, over 84 per cent is accounted for by the six weeks ending October 12, a period during which no repayment was due to either the IMF or the World Bank. Whatever be the immediate cause of such a major decline in foreign currency reserves

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