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12 years ago @ http://rupyagyan.blogs... - Rupee Depreciation - W... · 1 reply · +1 points

Hi Elle,

Sorry for the delayed reply as I was on the move. As for your question about currency swap I will try to give a brief as this in itself is a big topic.

Currency swap aggrements are entered between the central banks of two counties to stabilise their local currencies. eg. between RBI india and Bank of Japan. Under this aggreement, RBI and BoJ have agreed for a currency swap of upto $50bn. RBI can exchange rupees for dollars upto the stipulated amount and BoJ can exchange yen for dollars upto the stipulated amount. Naturally there will be some interest levied on the exchange of currencies and also there will be a common maturity date but the advantage of such an agreement is to meet any emergency dollar demands in the respective countries and stabilise the local currency in the event of fluctuations in the forex markets.

There is a downside to this though. The value of the currencies involved due to other factors (domestic inflation, let's say) will make things complicated and hence such agreements are used very cautiously.

12 years ago @ http://rupyagyan.blogs... - Current Account Defici... · 0 replies · +2 points

Thanks amar

12 years ago @ http://rupyagyan.blogs... - Weekly Market Update -... · 0 replies · +1 points

Thanks

12 years ago @ http://rupyagyan.blogs... - RBI and its Monetary P... · 0 replies · +2 points

Hi,

You can simply think of credit flow as ''loan taken'' to meet the financial needs of investment and capital expenditure of companies and establishments through the banking system.

For tight liquidity conditions :
good exposure to sectors IT, Pharma etc. which have little exposure to the domestic economy. a slight exposure to consumer oriented companies is also ok.

For easy liquidity conditions those sectors should be chosen which grow as the economy grows :
1. Banking & Financial Sector
2. Consumer Goods.
3. Auto & two-wheeler companies
4. Cement sector

12 years ago @ http://rupyagyan.blogs... - Incredible Stocks - IT... · 0 replies · +1 points

Thank You.

12 years ago @ http://rupyagyan.blogs... - RupyaGyan in ITB Direc... · 0 replies · +1 points

Thank you

12 years ago @ http://rupyagyan.blogs... - NSEL Fiasco - Effect o... · 0 replies · +1 points

@Sumeet,

True that an exchange like NSEL should not have been let to fail. But we must also understand that the FMC, SEBI etc have now got the wake up call and they will make sure that such a thing will not happen again. The mending of rules so as to practically nullify the effect of FTIL on MCX is evidence of the fact that the regulators are viewing the crisis at NSEL very seriously and would not want any spillover effects.

Though it is natural to be pessimistic, we must not forget that the govt. will not let one aberration to mar the image of the entire economic setup.

The present scenario brings back the memories of the Satyam Computers fiasco and how the govt. dealt with the aftermath. That incident should instill some confidence because the govt. successfully brought closure to the Satyam fiasco with a very resolute approach and we should expect the same to happen in this case too. In any case it is premature to write-off the case on a negative note.

12 years ago @ http://rupyagyan.blogs... - Issue of Bonus Shares ... · 0 replies · +1 points

Thanks for the feedback.

12 years ago @ http://rupyagyan.blogs... - RupyaGyan in ITB Direc... · 0 replies · +1 points

Thank you.

12 years ago @ http://rupyagyan.blogs... - Evaluate and Invest - ... · 0 replies · +1 points

Thank you.

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