BRICS SUMMIT: NOT JUST TALKS, BUT SERIOUS ECONOMIC INTEGRATION
The leaders of Brics nations have adopted the idea - of conducting trade between the five nations in their own currencies. Two agreements, signed among the development banks of Brazil, Russia, India, China and South Africa, say that local currency loans will be made available for trade between these countries.
With five fast-growing nations participating in local currency trade, it is unlikely that the system will fall into the rupee-rouble rut into which Indo-Soviet trade sank in the 1980s. It will allow participants to diversify their foreign exchange portfolios, hedging against movements in, say, and the dollar. Higher intra-Brics trade, conducted in our own currencies will shield our economies from disruptions in the west.
How will the exchange rates between these five currencies be determined? In the short run, it will be determined by the rates at which these trade against liquid currencies like the dollar. But if the dollar peg is to be truly broken, then the Brics currencies will have to trade amongst themselves vigorously, creating anintra-Brics currency market which will set rates.
This will deepen demand for our currencies and spur further opening up of our trade and investment systems. With this, the annual Brics meeting evolves from an occasion for polite shop talk, to a forum to link our growing economic clout to global policy interventions. The group, which accounts for half of humanity and a fifth of the world's trade volumes, is now taken seriously by many.
With five fast-growing nations participating in local currency trade, it is unlikely that the system will fall into the rupee-rouble rut into which Indo-Soviet trade sank in the 1980s. It will allow participants to diversify their foreign exchange portfolios, hedging against movements in, say, and the dollar. Higher intra-Brics trade, conducted in our own currencies will shield our economies from disruptions in the west.
How will the exchange rates between these five currencies be determined? In the short run, it will be determined by the rates at which these trade against liquid currencies like the dollar. But if the dollar peg is to be truly broken, then the Brics currencies will have to trade amongst themselves vigorously, creating anintra-Brics currency market which will set rates.
This will deepen demand for our currencies and spur further opening up of our trade and investment systems. With this, the annual Brics meeting evolves from an occasion for polite shop talk, to a forum to link our growing economic clout to global policy interventions. The group, which accounts for half of humanity and a fifth of the world's trade volumes, is now taken seriously by many.
POVERTY DOWN, NO MATTER WHAT METHOD IS USED, ASSERTS MONTEK SINGH AHLUWALIA
Rejecting widespread criticism for pegging poverty line at Rs 28.65 daily consumption, Plan panel deputy chairman Montek Singh Ahluwalia asserted that the number of poor in the country has come down irrespective of the method of calculation.
".Whatever poverty line you choose. The question is poverty in the country is going down. Some people have said that it is not correct. Poverty is not going down..I reject that view...I categorically say whatever indicator you use things are getting better in this country," Ahluwalia said.
As per the Commission's estimates, based on the Tendulkar Committee formula, poverty ratio has declined to 29.8 per cent in 2009-10, from 37.2 per cent in 2004-05. But the ratio has been worked out based on a controversial per capita daily consumption of Rs 28.65 in cities and Rs 22.42 in rural areas.
".Whatever poverty line you choose. The question is poverty in the country is going down. Some people have said that it is not correct. Poverty is not going down..I reject that view...I categorically say whatever indicator you use things are getting better in this country," Ahluwalia said.
As per the Commission's estimates, based on the Tendulkar Committee formula, poverty ratio has declined to 29.8 per cent in 2009-10, from 37.2 per cent in 2004-05. But the ratio has been worked out based on a controversial per capita daily consumption of Rs 28.65 in cities and Rs 22.42 in rural areas.
TRADE DEFICIT MAY RISE TO $428 BILLION BY 2015-16: ASSOCHAM
Oil and gold imports may increase to $ 243.7 billion and $ 83.3 billion respectively by 2015-16, it said.
During the first 11 months this fiscal, oil imports have increased 41 per cent to $ 132.6 billion. Gold imports were worth about $ 55 billion.
India's trade deficit could rise from $ 130.5 billion in 2010-11 to $ 428.3 billion by 2015-16 and become unsustainable with merchandise imports rising from $ 380.9 billion to $ 858.6 billion said.
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