India seeks help of non-resident citizens to reverse rupee slide
India is planning on reviving the rupee by reaching out to millions of its non-resident citizens to assist in reversing the currency decline. Senior government officials had announced on Monday that India is not interested in a global sovereign bond at the moment.
The officials, who chose to remain undisclosed, denied ruling out a bond issue and emphasized the need to revive the value of the currency. However, legislators were mindful of sending the wrong signals to global markets.
Accordingly, government officials decided to concentrate in collecting funds from non-residents around the world instead of the issuance of a global bond.
The government will be reusing measures acted out in 1998 and 2000 to revive the rupee such as increasing deposit rates and issuing bonds designed specifically for them. Other options involved increasing central bank policy rates and permitting selected firms to increase capital abroad.
The officials who spoke about the matter chose to remain unnamed due to the sensitivity of the issue and were not immediately available for additional statements and inquiries.