90% of India's forex assets is 'hot money' - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

90% of India's forex assets is 'hot money'

Jun 9, 1999

A status paper released on India's external debt revealed that over 92% of India's foreign currency assets, or approximately US$ 25 bn, comprise 'hot money'. 'Hot money' typically refers to that capital which has the potential to evaporate in the event of a crisis. The study has pegged India's short-term debt at US$ 3.63 bn as on December '98. The figure however excludes long term deposits maturing within one year, and includes only NRI deposits and trade credit.

In the case of India, 'hot money' constitutes, almost equally, India's short-term debt, FII investments, and total GDR exposure. When calculated by international norms, India's current short-term debt stands at US$ 8 bn. This, taken along with US$ 8 bn worth of GDR investment (as on 31st December '98) and US$ 8.65 bn worth of FII exposure, comprised the volatile assets of US$ 24.65 bn (92%) of the country's total forex assets of US$ 26.95 bn as on December 31, 1998.

Equitymaster requests your view! Post a comment on "90% of India's forex assets is 'hot money'". Click here!

  

More Views on News

Ride the Indian Real Estate Revival with this 'Different' Smallcap Stock (Profit Hunter)

Mar 23, 2021

Affordability in the housing segment has never been so good in last one and a half decade. Here's how you could make the most of it...

My Latest Stock Recommendation (Fast Profits Daily)

Oct 9, 2020

How I picked an exciting stock using trends from both the commodity and equity markets.

Data is the New Oil but It's Also the New Sugar. Here's How to Fight it (Profit Hunter)

Jun 1, 2020

Is too much data hurting your quest for market beating returns?

Quantum Mutual Fund: Hum woh nahi hain (The Honest Truth)

Apr 29, 2020

Ajit Dayal on how the mutual fund industry robs you of your wealth.

This One Trigger Could Turnaround Yes Bank's Stock Price (The 5 Minute Wrapup)

Oct 16, 2019

If Yes Bank manages to do this, it could be the start of a much-needed turnaround for the bank.

More Views on News

Most Popular

A Critical Update on the Market (Fast Profits Daily)

Mar 30, 2021

In this video, I'll tell you why I am recommending caution in the market at this time.

My Recent Recommendation Will Profit from the Global Supply Chain Crisis (Profit Hunter)

Mar 31, 2021

A tiny chemical company, started in the Licence Raj era, is a great example of a new wealth creating opportunity.

My Stock Trading Strategy (Fast Profits Daily)

Mar 31, 2021

In this video I'll show you exactly how I go about picking stocks for trading.

What You Need to Find Hundred Baggers (Profit Hunter)

Mar 30, 2021

100 baggers of the last decade share this common trait. Here's how to use it to nail future multibaggers.

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

MARKET STATS