These past few months have been primarily all about global cues driving the economy and we had a few chats with senior fund managers who gave us insights into how the Ukraine war, energy sources, supply chain breakdown and how the infusion of liquidity during COVID affect the global economy.
A Perspective on the Global Economy
India has displayed remarkable resilience in recovery after a Covid-induced slump in growth. We have managed to keep price pressure under check at a time when even developed nations are grappling with runaway inflation. But where will the earnings growth come from?
Indian Economy And Earnings Growth
Over the past 6 months, the dollar rose rapidly to a 20-year high. Exchange rates reflect the relative demand for countries' assets and respond to both CURRENT economic conditions and expectations of FUTURE conditions. But if the dollar is gaining strength, what’s the trickledown effect going to be?
Dollar Is Up, What’s The Effect?
To counter, precisely this problem, the RBI took strong steps to take the Rupee international. They are now allowing Vostro accounts to be opened in India so that we can trade directly in rupees instead of trading in dollars. The final objective is to make the rupee a more acceptable currency and if things go according to plan, maybe we will see more of our international trading partners actively using the rupee.
The RBI is trying to take the Rupee International
On banking, but on a very different note, many Indian defaulters escaped the country to enrich some other economy at the cost of our public sector banks. The shortfall had to be funded through taxpayer moneys which could have been used for development elsewhere. Famously quoting the government "they have no business running a business." But is the deal done and dusted? Or is there something we are missing out on?
The debate on Bank Privatization
These past few months have been primarily all about global cues driving the economy and we had a few chats with senior fund managers who gave us insights into how the Ukraine war, energy sources, supply chain breakdown and how the infusion of liquidity during COVID affect the global economy.
A Perspective on the Global Economy
India has displayed remarkable resilience in recovery after a Covid-induced slump in growth. We have managed to keep price pressure under check at a time when even developed nations are grappling with runaway inflation. But where will the earnings growth come from?
Indian Economy And Earnings Growth
Over the past 6 months, the dollar rose rapidly to a 20-year high. Exchange rates reflect the relative demand for countries' assets and respond to both CURRENT economic conditions and expectations of FUTURE conditions. But if the dollar is gaining strength, what’s the trickledown effect going to be?
Dollar Is Up, What’s The Effect?
To counter, precisely this problem, the RBI took strong steps to take the Rupee international. They are now allowing Vostro accounts to be opened in India so that we can trade directly in rupees instead of trading in dollars. The final objective is to make the rupee a more acceptable currency and if things go according to plan, maybe we will see more of our international trading partners actively using the rupee.
The RBI is trying to take the Rupee International
On banking, but on a very different note, many Indian defaulters escaped the country to enrich some other economy at the cost of our public sector banks. The shortfall had to be funded through taxpayer moneys which could have been used for development elsewhere. Famously quoting the government "they have no business running a business." But is the deal done and dusted? Or is there something we are missing out on?
The debate on Bank Privatization
