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Editor's Space                                                                                    ®

            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
            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),
            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
            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
            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
            been constantly increasing its gold reserves, data from the World Gold   Press Releases:
            Council shows.                                          

            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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