adding it wanted to shift some ofthe estimated 300 tonnes of gold bought annually for invest- ment to the bonds India was the world's biggest gold buyer before falling behind China in 2013 The government says about 20,000 metric tonnes of gold reside in temples or hide in drawers, twice the official holdings of the US.
Imports stoked a record trade shortfall in 2013, sending the rupee to an all-time low and forcing the nation to curb inward shipments of the metal Some of those restrictions have been eased, putting India on course to become the world's top consumer this year The bonds could save $2 billion on gold imports at current prices if fully subscribed in the first year, according to Nomura Ho ings Inc "They offer a good alternative for gold investors as they are backed by the sover eign and pay interest," Nomura India ana- lysts Sonal Varma and Neha Saraf wrote in a note
"The amount of notes issued may not exceed the equivalent of 50 tonnes of gold in the first year, and the lower limit for the nominal interest rate may be 2%," the gov- ernment said Imports of the metal climbed 10.5% in May from a year earlier to $2.42 billion. The rupee, down about 1% this year, weakened 0.1% to 63.8187 a dollar as of 1.34 p.m. in Mumbai. The record low in 2013 was 68.845. Modi is also trying to mobilise idle gold to curb imports under a plan that will allow citizens to deposit the metal with banks to earn interest.
adding it wanted to shift some ofthe estimated 300 tonnes of gold bought annually for invest- ment to the bonds India was the world's biggest gold buyer before falling behind China in 2013 The government says about 20,000 metric tonnes of gold reside in temples or hide in drawers, twice the official holdings of the US.Imports stoked a record trade shortfall in 2013, sending the rupee to an all-time low and forcing the nation to curb inward shipments of the metal Some of those restrictions have been eased, putting India on course to become the world's top consumer this year The bonds could save $2 billion on gold imports at current prices if fully subscribed in the first year, according to Nomura Ho ings Inc "They offer a good alternative for gold investors as they are backed by the sover eign and pay interest," Nomura India ana- lysts Sonal Varma and Neha Saraf wrote in a note"The amount of notes issued may not exceed the equivalent of 50 tonnes of gold in the first year, and the lower limit for the nominal interest rate may be 2%," the gov- ernment said Imports of the metal climbed 10.5% in May from a year earlier to $2.42 billion. The rupee, down about 1% this year, weakened 0.1% to 63.8187 a dollar as of 1.34 p.m. in Mumbai. The record low in 2013 was 68.845. Modi is also trying to mobilise idle gold to curb imports under a plan that will allow citizens to deposit the metal with banks to earn interest.
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