According to a study by one of the rating agencies, about 45% of India Inc.'s forex debt
is short term in nature. This amounts to approximately $100 billion. Further, as per
the report, this forex debt is unhedged. Come September, the US Federal Reserve bank
may tighten it QE3 programe.
Imagine a scenario when these corporates suddenly rush to the markets to hedge their
exposures coinciding with the Federal Reserve's decision to scale down its QE3.
It will not be a pretty sight to be watched by the faint hearted person.
No wonder, the RBI and the government of India woke up before the nightmare.
is short term in nature. This amounts to approximately $100 billion. Further, as per
the report, this forex debt is unhedged. Come September, the US Federal Reserve bank
may tighten it QE3 programe.
Imagine a scenario when these corporates suddenly rush to the markets to hedge their
exposures coinciding with the Federal Reserve's decision to scale down its QE3.
It will not be a pretty sight to be watched by the faint hearted person.
No wonder, the RBI and the government of India woke up before the nightmare.
Crude Oil March and Brent Oil April series have gained 0.3-0.4 percent each at $ 54.51 and $ 57 per barrel, respectively.
ReplyDeleteNatural Gas April expiry has declined 0.3 percent at $ 2.692.
Crude Intraday Tips