Kishore Biyani on ET Now Nov 16, 2009
Can you give us a little more detail on putting all of the retail business into a subsidiary where there would possibly be some potential capital infusion is there any plans to list that subsidiary subsequently and how would that capital inflows come into effect. I think our major expansion which is a Pan India model which is a Big Bazaar the value format as we call it Big Bazaar, Food Bazaar, Electronic Bazaar, Furniture Bazaar. (India Times)
IMF head warns of dangers of capital flows Nov 16, 2009
"While capital inflows are generally beneficial, they can raise risks of rapid and potentially destabilising movements of currencies and asset prices," he said. Policymakers had a range of tools to limit the adverse effects, including exchange rate appreciation and tighter fiscal policy, he added. (Business Report, South Africa)
China, Japan Policymakers Say Fed's Low-Rate Policy May Fuel Asset Bubbles Nov 16, 2009
Monetary easing in advanced economies has stimulated capital inflows to emerging economies, Shirakawa said. If emerging nations continue to recover at a faster pace than advanced ones, they might overheat and experience financial turmoil, triggering a recession, he said. (Bloomberg -- Asia)
Rupee up 20 paise at 46.11 a dollar Nov 16, 2009
11 against the US currency in early trade, extending gains for the second straight day on expectations of more capital inflows and dollar selling by exporters ... Forex dealers said expectations of increased capital inflows into domestic equities by foreign funds which may open higher in tandem with other Asian markets and dollar's weakness against other currencies, mainly supported the Indian rupee ... 11 against the US currency in early trade, extending gains for the second straight day on... (India Times, India -- Intl Business)
GDP may exceed 6 pc this fiscal: CII Nov 15, 2009
"Economic indicators are looking up as industrial production has shown a significant upturn, business confidence has surged, stabilised financial markets and capital inflows have returned," CII Director General Chandrajit Banerjee said. He added, despite these upside prospects, the performance of agriculture is likely to pose some downside risks to the growth outlook for Indian economy in 2009-10. (India Times)
Press Release: IMF Mission Reaches Staff-Level Agreement on Fourth Review Under Stand-By Arrangement with Georgia Nov 14, 2009
IMF financing is intended to fill the external financing gap created by the lagged recovery of private capital inflows. In all, the main objective of the SBA remains that of providing temporary financial support to facilitate policy adjustment and restore the confidence of markets and investors. (IMF News)
A Leadership Role for Asia in Reshaping the Post-Crisis Global Economy, Annual Lecture by Dominique Strauss-Kahn, Managing Director of the International Monetary Fund, at the Monetary Authority of Singapore Nov 14, 2009
While capital inflows are generally beneficial, they can raise risks of rapid and potentially destabilizing movements of currencies and asset prices ... Market-based controls on capital inflows can help reduce the volatility of such flows. (IMF News)
Hot money may threaten emerging market stability: IMF Nov 14, 2009
"While capital inflows are generally beneficial, they can raise risks of rapid and potentially destabilizing movements of currencies and asset prices," Strauss-Kahn said ... "They include exchange rate appreciation, tighter fiscal policy, and, where appropriate, lower interest rates. In addition, macro-prudential instruments can limit the risk of asset price bubbles. Market-based controls on capital inflows can help reduce the volatility of such flows," he said. (India Times)
Transcript of a Press Conference Call with International Monetary Fund Resident Representative for Sri Lanka Koshy Mathai on the Completion of the IMF's First Review Under Sri Lanka's Stand-By Arrangement Nov 13, 2009
We ve had a surge of capital inflows coming in over the past few months, what with the end of the war and perhaps some additional confidence associated with the approval of the program ... There have been extremely favorable developments over the past few months, as you know, with respect to capital inflows. (IMF News)
Brazil: Taking off Nov 13, 2009
The government last month imposed a tax on short-term capital inflows. But that is unlikely to stop the currency s appreciation, especially once the oil starts pumping. (The Economist)
China's Yuan `Straitjacket' Risks Inflating Asset Bubbles as Growth Surges Nov 13, 2009
An interest-rate hike would invite capital inflows, says China International Capitals Ha, who previously worked at the International Monetary Fund and Hong Kong Monetary Authority. The root of asset-price inflation in China is the lack of an independent monetary policy. (Bloomberg)
China not to let yuan gain in short term: experts Nov 13, 2009
According to Yin Jianfeng, a researcher with the Chinese Academy of Social Sciences (CASS), a government think tank, it is natural for the central bank to pay more attention to increasing international capital inflows. "Excessive liquidities are pouring into China as the country is witnessing rapid recovery while the economic condition is still weak in the western world," he said. (Xinhuanet, China)
No wall yet to hold capital flows: Fin secy Nov 12, 2009
NEW DELHI: The government has ruled out any curbs on capital inflows even though the inflows in the initi 00004000 al months of the current fiscal are almost on par with corresponding months of 2007-08, the year several measures to curb inflows were put in place as monetary management had become difficult ... That government may still be concerned about capital inflows is evident in that it has said that there are no immediate plans to review the cap on foreign institutional investment (FII)... (India Times)
Eastern Europe's economic woes: Down in the dumps Nov 12, 2009
Foreign capital inflows may have been too big or too quick, leading to a consumption and construction splurge, fuelled by reckless lending to firms and households, often in foreign currencies. Inflows of money from abroad have fallen dramatically, or in some cases even reversed. (The Economist)
Medvedev to set out economic reforms in speech Nov 12, 2009
Russia's pre-crisis prosperity was built on high oil prices and surging capital inflows, which powered a decade of steady growth of 7. 0-8. (Yahoo! Asia News)
Public Information Notice: IMF Executive Board Concludes the 2009 Article IV Consultation with Uruguay Nov 12, 2009
After coming under pressure late last year, the peso has been appreciating again in recent months and capital inflows have resumed, while yields and country risk have stabilized near pre-crisis levels. Core inflation remains in the upper half of the target range in an economy that is still operating around potential. (IMF News)
Demand surge in India adds to stimulus exit debate Nov 12, 2009
India is widely expected to be among the first of the large economies to pull back from extraordinary fiscal and monetary measures introduced to help weather the global downturn, as inflationary pressures and a surge in capital inflows have started worrying policy makers ... While the global slump continued to erode the exports, the country has seen a surge in capital inflows as foreign investors buy Indian shares and invest in capacity expansion ... A central bank deputy governor said on... (India Times)
Taiwan Billionaires Send Cash Home as HSBC Sees Island's Dollar Rising 11% Nov 12, 2009
The balance the central bank has to play is to attract capital inflows without stalling exports, said , the co-head of fixed-income at Societe Generale SA in Hong Kong. SocGen recommends buying the currency against the Swiss franc. (Bloomberg)
* FSC tightens grip to fight hot money Nov 11, 2009
As of the end of September, overseas capital inflows had accumulated NT$4 ... No revisions, however, were made to the regulation that stipulates that up to 30 percent of overseas capital inflows are allowed to be invested in non-equity destinations including government bonds and exchange derivatives, the commission said. (Taipei Times, Taiwan -- World)
Rural India: Portfolio funds see growth Nov 11, 2009
Micro-credit firms and microfinance companies, which invest in social projects involving rural poor, are witnessing large capital inflows from strategic investors. According to microfinance industry estimates, the segment that includes micro-equity investments, has received over Rs 3,000 crore of PEVC funds in the past three years. (India Times)
Brazil's Real Weakens on Speculation Tax on Stocks, Bonds May Be Increased Nov 11, 2009
Finance Minister said today the government doesnt want foreign capital inflows to overvalue the local currency or equities, Agencia Leia wire service reported. We want foreign capital for direct investment, for stocks and for financial investments but without exaggeration, to make sure there will not be a bubble in stock markets or excessive valuation of the Brazilian currency, he said at a conference in Sao Paulo, according to Leia. (Bloomberg -- Latin America)
'Capital inflows not a concern now' Nov 11, 2009
Capital inflows not a concern now: Financial Secretary- Finance-Economy-News-The Economic Times ... Capital inflows not a concern now: Financial Secretary11 Nov 2009, 1100 hrs IST, REUTERS ... NEW DELHI: Rising capital inflows into India are not a concern now and authorities are monitoring t 00004000 he situation, Finance Secretary Ashok Chawla said on Wednesday. (India Times)
Wishful thinking Nov 11, 2009
We need to debate the feasibility, instead, of a tax on capital inflows, a la Brazil ... The suggestion on joint fixes to tackle capital inflows is excellent. (India Times)
'Avoid intervention on local currencies' Nov 10, 2009
Among the major economies, Brazil announced earlier this month that it will impose a 2% tax on foreign capital inflows into stocks and bonds to stem the appreciation in its currency, the real. And Dominique Strauss-Kahn , the of the International Monetary Fund, said earlier this month that he is not opposed in principle to capital controls by emerging economies to curb the inflow of hot money that can result in the creation of asset price bubbles and put upward pressure on local currencies. (India Times)
* The seeds of the next economic crisis are being sown now Nov 10, 2009
This was not just true of developed economies, such as the US and the UK. The annual transition report by the European Bank for Reconstruction and Development, released on Nov. 2, said that large-scale capital inflows into eastern European countries had contributed to credit booms and foreign currency lending. These, in turn, made the crisis deeper and complicated its management. (Taipei Times, Taiwan -- World)
China to Overlook Calls for Stronger Yuan as Exports Fall, Researchers Say Nov 10, 2009
Rising asset prices and capital inflows may persuade the central bank to allow the yuan to appreciate next year, the Chinese Academys Zhang said from Beijing ... 273 trillion because of capital inflows and a trade surplus ... Capital inflows to China have quickened and the growth in Chinas exchange reserves remained fast, which seems hard to sustain, he said. (Bloomberg -- Asia)
Rupee hits 3-week high, up 6p against dollar Nov 10, 2009
Forex dealers said expectations of more capital inflows by foreign funds into local markets, which are likely to move upwards in tandem with other Asian markets, supported the Indian rupee. Among the Asian bourses, Japan's benchmark Nikkei-225 index climbed 161. (India Times, India)
Rupee gains another 30p against dollar Nov 9, 2009
50 against the dollar in early trade on Monday on fresh dollar selling by exporters amid firm local stocks and heavy capital inflows this year ... 50 against the dollar in early trade on Monday on fresh dollar selling by exporters amid firm local stocks and heavy capital inflows this year. (India Times, India)
Mantega Says Brazil's New Tax on Capital Inflows to Help Prevent `Bubble' Nov 6, 2009
Nov. 5 (Bloomberg) -- Brazilian Finance Minister said the countrys 2 percent tax on some capital inflows will help prevent the formation of an asset bubble. . (Bloomberg -- Latin America)
Peru's Central Bank Maintains Key Rate at Record Low 1.25% for Third Month Nov 6, 2009
The governments stimulus plan should gain traction in the coming months and capital inflows will get stronger. . (Bloomberg -- Latin America)
Brazil's Real Gains for Second Straight Day on Capital-Inflows Speculation Nov 5, 2009
Brazil had net capital inflows of $14. 598 billion in October, compared with an inflow of $1. (Bloomberg -- Latin America)
File: Sensex records biggest 5-month gain Nov 5, 2009
His remarks that there are no plans to place curbs on the capital inflows into the country further augmented enthusiastic buying. Marketmen said strong global cues and a weakening dollar against a basket of currencies also enlivened the sentiment. (India Times, India)
First Monday Nov 4, 2009
Large external deficits, the dominance of the dollar and the large capital inflows that necessarily accompany deficits and currency dominance are no longer in the national interest, he says. He offers two alternatives to the current international monetary order: a multiple-currency system in which other currencies share the central position of the dollar in private markets; and a system that would let countries augment their monetary reserves using Special Drawing Rights issued by the. (USA Today -- Money)
Re appreciates 22 paise/$ Nov 4, 2009
MUMBAI: The Indian rupee appreciated by 22 paise in early trade today on expectations of fresh capital inflows by capital funds as stock market may open higher, tracking firming trends on other Asian equity markets ... Dealers said expectations of fresh capital inflows as equities may open higher, in line with firming trends in Asian market, mainly supported the rupee ... The rupee appreciated by 22 paise in early trade on expectations of fresh capital inflows by capital funds. (India Times)
Transcript of a Conference Call on the Completion of the First Review of Iceland’s Stand-By Arrangement with Mark Flanagan, Mission Chief for Iceland, and Franek Rozwadowski, Resident Representative in Iceland Nov 3, 2009
The first step has always been identified as liberalizing capital inflows and that, if anything, will have a positive impact on Iceland's balance of payments. The issue has always been if Iceland's financial sector would be ready to absorb the additional volatility that would be implied through liberalization. (IMF News)
Iceland to Remove Capital Controls on New Investments, Central Bank Says Nov 1, 2009
Iceland Removes Controls on Capital Inflows, Central Bank Says - Bloomberg ... Iceland Removes Controls on Capital Inflows, Central Bank Says. (Bloomberg -- Europe)
Brazil's September Budget Deficit Widens to Nine-Month High of $13 Billion Oct 31, 2009
The International Monetary Fund last week said Brazil and other Latin American economies emerging quickly from the global financial crisis should consider removing fiscal stimulus measures as strong capital inflows put pressure on currencies to appreciate. Treasury Secretary yesterday said that the federal government would post a strong primary surplus in October, reflecting stronger economic activity and smaller social security payments. (Bloomberg -- Latin America)
Send your questions Oct 31, 2009
Strong currency nations like Australia and Norway will lead the way, followed by developing Asia and a handful of emerging markets experiencing strong capital inflows. I suspect the US, Japan, the U.K. and to a lesser degree, the European Central Bank, will move cautiously. (FT.com -- Markets)
India and capital flows: A world apart Oct 30, 2009
Now that foreigners are again flocking to India s stockmarket (see chart), capital inflows are once more playing on the RBI s mind. At the IMF s annual meetings in October, the RBI s governor worried that if he had to raise interest rates earlier than other economies, the gap in returns might attract more foreign money. (The Economist)
Press Release: Statement of the IMF's Mission to Zimbabwe Oct 30, 2009
Credit expansion, led by post-hyperinflation remonetization and capital inflows, is supporting economic activity. However, it is also contributing to a large external current account deficit and increased credit and liquidity risks in the banking system. (IMF News)
US growth turns positive Oct 30, 2009
The bigger challenge, however, would be the resumption of capital inflows in excess of what the Indian economy can absorb ... An appreciating rupee improves dollar returns on investment and induces further capital inflows ... The government has to start thinking now, whether it should follow Brazils example and impose restrictions on excessive capital inflows. (India Times)
Rupee soars 32 paise to 46.88 against dollar Oct 30, 2009
Expectations of fresh capital inflows into the domestic equities, which may open sharply higher in tandem with other Asian markets also supported the Indian rupee. At the Interbank Foreign Exchange (Forex) market, the local unit strengthened by 32 paise to 46. (India Times, India)
The dollar race: edging closer to parity Oct 29, 2009
Australia's relatively high interest rates are thus likely to continue to attract capital inflows from overseas, as they have done for most of the past decade. Secondly, the Australian dollar has been buoyed by the recovery in commodity prices, although in the short term, at least, this leg of support for the currency is arguably weaker than the others. (Sydney Morning Herald -- Business)
Foreign speculation on our currency is a bubble set to burst Oct 29, 2009
It has decided to impose a 2 per cent tax on all capital inflows to stop the real appreciating further ... In fact it is the immigrants who are spurring the economy by bringing in capital inflows. (Sydney Morning Herald -- Opinion)
South Africa: Minister Cuts Forex Controls to Curb Currency Oct 28, 2009
"Who knows, there may be capital inflows," he said. "What's important is to undertake reform with a goal in mind ... you want to lower the cost of doing business, and remove the hassle factor with respect to exchange controls.". (allAfrica.com)
China Needs Unexpected Yuan Jump to Limit Inflows of `Hot Money,' UBS Says Oct 27, 2009
China will likely seek to slow capital inflows by convincing speculators they dont stand to make large returns, rather than allowing a one-off appreciation, said , head of global foreign-exchange strategy at Calyon in Hong Kong. China will need to be very careful, he said. (Bloomberg -- UK)
* Monetary supply posts strong growth Oct 27, 2009
Chen said net capital inflows of US$7. 06 billion accounted for the increase. (Taipei Times, Taiwan -- World)
Lula's Overvalued Real Prices Big Mac Above London as Goldman Sees Rally Oct 27, 2009
65 per dollar on rising commodity prices and sustained growth of capital inflows. Brazils economic fundamentals are superior compared to its peers, said , an emerging markets economist at IDEAglobal in New York. (Bloomberg -- Latin America)
Market's in for consolidation: JP Morgan Oct 27, 2009
Low external rates and increased risk appetite, coupled with stable growth prospects, have accelerated capital inflows ... We are structurally positive on capital inflows. (India Times)
Lula Says Brazil Needs Lower Taxes to Spur Domestic Demand, Bolster Growth Oct 27, 2009
The International Monetary Fund last week said Brazil and other Latin American economies emerging quickly from the global financial crisis should consider removing fiscal stimulus measures as strong capital inflows put pressure on currencies to appreciate. Brazil in April cut taxes by as much as 10 percentage points on several home appliances, providing incentives for consumers to boost spending and lead the out of its first recession since 2003. (Bloomberg -- Latin America)
Re weakens tracking choppy shares Oct 26, 2009
"Higher capital inflows, in conjunction with smaller trade deficits (and thereby current account deficits), and continuing US dollar weakness, are likely to strengthen the rupee," economists at Axis Bank said in a note. "The effect of a rate hike on capital flows remains uncertain, whether equity-related outflows will outweigh debt-related inflows," they added. (India Times)
Currencies: The diminishing dollar Oct 24, 2009
The slide has unnerved policymakers in economies whose currencies are rising (see ), notably Brazil, where a 2% tax on foreign capital inflows has been imposed. Coupled with the extraordinary looseness of American policy, the weak dollar has also revived fears of a currency crash. (The Economist)
Press Release: Latin America and Caribbean Recovering from Effects of Global Crisis, but Policy Challenges Remain, IMF Report Says Oct 24, 2009
Some countries may start experiencing capital inflows, perhaps on a scale that could become problematic. This would speed up the need to remove stimulus and is another reason for reversing fiscal measures before monetary ones. (IMF News)
Rupee up 28 paise to 46.46 a dollar Oct 23, 2009
Expectations of fresh capital inflows as stock markets may open on a strong footing, in line with firming trends in Asian market, also gave a boost to uptrend, they added. Topics. (India Times, India)
Rupee retreats from 2-week lows Oct 23, 2009
MUMBAI: The rupee snapped a two-day fall and rose on Friday boosted by gains in regional peers and a higher start to the domestic sharemarket, which could fuel more foreign capital inflows ... The rupee snapped a two-day fall and rose boosted by gains in regional peers and a higher start to the domestic sharemarket, which could fuel more foreign capital inflows. (India Times)
Gold futures almost steady, may rise later Oct 23, 2009
The rupee snapped a two-day fall and rose boosted by gains in regional peers and a higher start to the domestic sharemarket, which could fuel more foreign capital inflows. A strong rupee makes the dollar-quoted asset cheaper. (India Times)
Dr C Rangarajan, Chief, PM's economic advisory council Oct 22, 2009
As things stand today, capital inflows do not pose a serious problem. It may add around $31 billion to the reserves but will not cause a serious concern. (India Times)
Brazil's Bank Keeps Rate at Record Low 8.75%, Signals No Increase Imminent Oct 22, 2009
Most important, he said, is whether the global rebound that has pushed up prices for Brazils commodity exports and led to a return of capital inflows will peter out in 2010. The pace of economic recovery is still unclear, therefore it is too early to think about raising interest rates, , chief economist at Sao Paulo-based Corretora Concordia, said in an interview from Rio de Janeiro before the rate decision. (Bloomberg -- Latin America)
GDP seen growing 6.75% Oct 22, 2009
75% - India Business - Business - The Times of India. TNN 22 October 2009, 12:39am IST. (India Times, India)
Brazil May Keep Rate at 8.75% to Solidify Recovery Before Ending Stimulus Oct 21, 2009
Most important, he said, is the possibility that the global rebound that has pushed up prices for Brazils commodity exports and led to a return of capital inflows may peter out in 2010. Todays meeting will be the first since Meirelles last month joined the Brazilian Democratic Movement Party in his home state of Goias. (Bloomberg -- Latin America)
Jaideep Mishra: Monetary policy Oct 21, 2009
Besides, a policy induced hike in interest rates would be a perverse incentive for heightened capital inflows, which would have untoward consequences ... It is, of course, true that capital inflows from abroad is driving up equity prices here. (India Times)
IMF defends lending policies Oct 21, 2009
"The fund might respond that it could not be expected to anticipate the depth of the world recession and its impact on developing countries through exports, capital inflows, remittances, access to trade credits and other channels," wrote the CEPR report. "But the fund should have been more careful in its projections and should have anticipated a severe downturn that would have serious effects on low- and middle-income countries.". (Asia Times Online)
Volatility in currency affects trade Oct 19, 2009
Analysts expect capital inflows to continue and even increase in the short to medium terms due to the huge increase in global liquidity conditions. There are large financial institutions and funds that are accessing offshore markets for debt and equity. (India Times)
Emerging-Market Currencies May Become Volatile, Brazil's Meirelles Says Oct 18, 2009
The Brazilian government may reintroduce a tax on foreign capital inflows to curb the currencys rally, O Estado de S. Paulo reported today without saying where it got the information. President da Silva said today in Cabrobo, Pernambuco state the government no plans for us to implement taxes anywhere. (Bloomberg -- Latin America)
Sagging US consumer mood tempers output optimism Oct 17, 2009
In other data released on Friday, net overall capital inflows into the United States rebounded to $US10 ... Net long-term capital inflows, excluding swaps, rose to $US28. (Sydney Morning Herald -- Business)
