Page 4 - DIGITAL CO NOV. 2019

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Selling family jewellery

Published by:
Currently market is abuzz that RBI is selling its gold reserves.
Highland Media Publishers Pvt. Ltd.
The buzz started after a report that RBI was selling gold from its reserves. Registered Office:
609, 6th Floor, Swastik Chambers, Sion-Trombay
It said RBI has bought gold worth $5.1 billion and sold about $1.15 billion Road, Chembur (East), Mumbai – 400 071.
of gold since beginning of its business year in July. Value of gold in India’s Tel: 022-25271902
forex reserves amounted to $26.7 billion in October. This has to be seen
Editor: Shrirang Krishnan
in context of adopting recommendations of Dr Jalan Committee on editor@constructionopportunities.in
RBI’s economic capital framework, which advised that after providing for
Associate Editor: Shailaja Sharma
various risk buffers, (ranging between 5.5% to 6.5% of RBI’s balance sheet),
edit@constructionopportunities.in
entire realised surplus can be transferred to the government. Temptation
to sell the gold would have been with blessings of the Jalan Committee. Special Correspondent: Satish Chavan
Chief Executive Officer: V Anand
As a rebuttal to this rumour, RBI promptly rubbished reports that it was
anand@constructionopportunities.in
selling gold from its reserves or trading gold. "The fluctuation depicted
in Weekly Statistical Supplement (WSS) is due to change in frequency of Head Circulation & Subscription:
Subhash Bhogale
revaluation from monthly to weekly basis and is based on international
support@constructionopportunities.in
prices of gold and exchange rates," RBI said on its Twitter handle.
Creative Designer:
With its 618.2 tonnes of gold holdings end-August, RBI is among top 10 Sandeep N Salve
central banks globally in terms of gold reserves. Last two years, RBI has dtp@constructionopportunities.in
been constantly increasing its gold reserves, data from the World Gold Press Releases:
Council shows. coordinator@constructionopportunities.in

Dipping into the RBI till
All rights reserved. While all efforts are made to
What gives credence to the gold selling rumour is the fact that despite ensure that the information published is correct.
stiff resistance from two previous RBI Governors, the government got RBI Construction Opportunities holds no responsibility
for any unlikely errors that might occur.
(with blessings of Jalan Committee) to transfer a record `1,23,414 crore of
its surplus to the central government for FY 2018-19 or FY19 (July to June), Printed and Published by Shrirang Krishnan on
and an additional `52,637 crore of excess provisions as recommended behalf of Highland Media Publishers Pvt. Ltd.,
printed at Indigo Printers, BRM-10, Devidayal
by Jalan Committee, on Economic Capital Framework (ECF). Compound, Near Britania Company, Reay Road
(East), Mumbai – 400 010 and published from
This dipping into the Central Banks’ till is bad economic policy, without 609, 6th Floor, Swastik Chambers, Sion-Trombay
precedent in history of Central Banking. And even more shocking and Road, Chembur (East), Mumbai – 400 071.
Editor: Shrirang Krishnan
unprecedented is appointing a Central Bank Governor who has no
degree in economics, and therefore no understanding of economics. The information on products and projects on
The current RBI Governor is a retired IAS officer who majored in History. offer is being provided for the reference of the
readers. However, readers are cautioned to
make inquiries and take decisions on purchase
or investment after consulting experts on the
subject. CONSTRUCTION OPPORTUNITIES holds no
responsibility for any decision taken by readers on
Shailaja Sharma the basis of information provided herein.

Associate Editor
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4 CONSTRUCTION OPPORTUNITIES|NOVEMBER 2019