Tuesday, November 20, 2012

MONETARY: CRISIS

Slowdown and crisis together

This decision will eventually affect the FDI flows in India and China. Moreover, with slashing of interest rates in US, the FDI flow and the Indian currency (as well as the Chinese currency) will get negatively affected.

The Fed Rate cut did spark some relief, but the poor performance of top US investment banks like Goldman Sachs and Lehman Brothers did neutralise the positive effect. However, China’s renminbi gained some ground against the Japanese yen and the Hong Kong dollar to stand at 6.4564 yuan against 100 Japanese yen and 0.96189 yuan against one Hong Kong dollar! seems shocking.. Huh.. 


Source : IIPM Editorial, 2012.

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