I agree with you completely, this govt has also fudged data to only present a picture it considers positive. I cannot shake the sense that something will give, but what? And how does one prepare for it?
Also, how is the rupee staying in this range? I read that RBI is both, buying AND selling dollars, to maintain the illusion of rupee strength. When will the law of physics take over?
For now the rupee has stayed relatively stable, though weaker than what it was five years ago. This is both because of policies that allow forex to flow in. Significantly, the forex that does flow in is for debt and equity instruments, not as foreign direct investment (FDI). The latter is stable, and dependable. The former is flighty -- sometimes called hot money. The latter is slowing down. The former is climbing. You draw your conclusions :-)
I agree with you completely, this govt has also fudged data to only present a picture it considers positive. I cannot shake the sense that something will give, but what? And how does one prepare for it?
Many thanks. I wish i had the solution. Obvious remedies won't work till something gives way😒
Also, how is the rupee staying in this range? I read that RBI is both, buying AND selling dollars, to maintain the illusion of rupee strength. When will the law of physics take over?
For now the rupee has stayed relatively stable, though weaker than what it was five years ago. This is both because of policies that allow forex to flow in. Significantly, the forex that does flow in is for debt and equity instruments, not as foreign direct investment (FDI). The latter is stable, and dependable. The former is flighty -- sometimes called hot money. The latter is slowing down. The former is climbing. You draw your conclusions :-)