India plans overseas debt sale to aid rupee

July 12
3:48 AM 2013

The government of India planned to meet eight bankers as it weighed to sell its debt abroad. The move was to raise US dollars and aid the stability of the Indian rupee. This was according to officials from the Finance Ministry who were knowledgeable of the matter.

The meeting held today is a brainstorming session. The government and its officials conducted assessments and feasibility research of such sales. This was according to an official who asked not be named as the move was confidential. The top adviser of the Finance Ministry, Raghuram Rajan chaired the gathering. The officials also said that Barclays Plc, Bank of America Corp and Deutsche Bank AG would be among those banks present in the meeting.

In 1998, India sold its foreign currency debt to non-Indian residents. This would mean that any issuance of sovereign dollar bonds for investors overseas would be the first in India's history. Last month, the Indian rupee was the world's worst performer against the US dollar. Last July 8, the rupee slumped an all time low that triggered concern for the country to have increased reserves to be able to stabilize its currency.

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