Policy intervention in gold to remain: RBI governor
Friday, 03 November 2006, 20:30 IST
Printer Print Email Email
New Delhi: Reserve Bank of India (RBI) Governor Y.V. Reddy Friday clarified that policy intervention in gold imports could not be wished away as the precious metal was seen as a surrogate for currency. "With gold being seen as a surrogate for currency and capital account, policy intervention (by the government) in cross border trade cannot be wished away," Reddy said at a meet on 'Global risks to emerging markets' organised by the Associated Chambers of Commerce and Industry of India (Assocham). Responding to industry leaders queries on how the government proposed to check the increasing import dependence for gold, Reddy said this would not be possible given that the yellow metal had become a safe investment tool for people. Considering the increasing lure of gold for investment, Reddy said it was important to ensure "consumer protection through essaying or hallmarking of gold. It is imperative that this is done on a priority basis". Recent studies by the Bureau of Indian Standards (BIS) proved that there was no let up in the number of jewellers duping consumers and selling them gold articles of lower purity despite a large number of hallmarking centres across the country. After a brief respite when prices dipped last month, gold hit an eight-week high above $620 Thursday over concerns on US economy, a weak dollar and heavy investor demand.
Source: IANS
siliconindia