Explore Raise Eng - -

Mr. Crowd News   |  Market

India Forex Reserves Edge Towards $400 Billion

By Mr. Crowd 12 Sep 20170:25

This September, India’s Forex reserves have jumped $3.5 billion to closing in on the $400 billion mark. This has been due to strong entries from foreign investors into India’s markets that have coincided with a movement in gold reserves with the central bank.

Increase in Gold Reserves
According to The Economic Times, Soumya Kanti Ghosh, chief economist of the State Bank of India, said: “The increase in gold reserves is a big positive and could be mainly driven by the lessening of uncertainty over imposition of Goods and Services Tax which could have driven up demand for gold in the market.” Bankers have pointed to the accumulation of gold as reserves as a strong point for the central bank“ as it is considered to be a safe haven much like the dollar.”

Too Much Money!?
The effect this will have on the Indian economy is one of the toughest questions facing the country’s financial sector. Bloomberg claim that India’s central bank is having to mop up inflows that is adding cash to the local banking system in order to keep the rupee stable and exports competitive. The financial site points out that the banks already has too much money due to Prime Minister Narendra Modi’s demonetization program last year. This has left them struggling to pay interest on the deposits in an environment where loans are not picking up. The cost to mop up these inflows has been steep with the Reserve Bank of India halving its annual dividend to the government. Foreign investors, however, have pounced on the situation and poured $18.5 billion into Indian equities this year.

The Impact of Cryptocurrencies
The increase in cryptocurrencies across the globe is having an effect on the business interests of both foreign investors and Small and Medium-sized Enterprises (SMEs). As businesses are becoming more global, SMEs are looking to take advantage of currency fluctuations, and invest in cryptocurrency markets. This had led to a rise of financial programs to assist them.

One such program is The Hive Project, “a cryptocurrency invoice financing platform created to help SMEs get the financing they need,” that was founded this year. The project provides an alternative source of liquidity compared to offers from traditional financial institutions. Jure Soklic, co-founder and CEO told the EconoTimes: “for too long, SMEs have been left out in the cold by traditional lending systems which favor large companies.” With record reserves recorded in places like India more SMEs will use more traditional markets like FOREX and cryptocurrencies like Bitcoin to trade and invest. As the U.S. and Australian governments move to regulate cryptocurrencies, platforms like The Hive Project, which seek ways around the regulations, are a good indicator of the shift in SMEs interests.

The Problem: How to Manage the Excess Liquidity

India’s Forex reserves are expected to hit $4 billion this September. Derrick Kam, an economist at Morgan Stanley wrote in a note “as the excess liquidity challenge looks set to persist, the RBI will need more tools to manage this, such as the standing deposit facility.” In the conclusion to their article Bloomberg stated: “Apart from high costs, there’s another dimension to the surge in liquidity. The RBI could face a shortage of bonds it places as collateral with its creation of a window – the so-called standing deposit facility – which doesn’t’ require any collateral.” One thing is sure, global markets and SMEs will be paying close attention to the opportunities presented by this record increase in India’s Forex.


Market news (the Market News) is not intended as investment advice and must not be relied on as such.

To the maximum extent permissible by applicable law, Mr. Crowd assumes no liability or responsibility whatsoever for any errors or omissions in the Market News. Mr. Crowd does not endorse or represent the reliability or accuracy of the Market News. Mr. Crowd shall not be liable for any investment decisions made based upon the Market News.

The Market News may contain hyperlinks to external websites or web pages for which Mr. Crowd is not responsible.

Copyright exists in the Market News may belong to Mr. Crowd, to the authors, or to any other parties depending on the circumstances. Reproduction, distribution, use and/or linking without consent from the relevant parties is not permitted.

If you believe or are aware that any information contained in the materials is inaccurate, erroneous, unlawful, obscene, defamatory or infringes any intellectual property rights of a third party, please contact Mr. Crowd by email at: cs@mrcrowd.com.

on US Startups

Register Now
Success By Media LLC (SBM)
raising up to $1,000,000
Regulation:Regulation CF
Securities Type:Membership Units
Share Price:$4.00

to go
The Armored Citizen, LLC (TAC)
raising up to $1,000,000
Regulation:Regulation CF
Securities Type:Membership Units
Share Price:$1.00

to go
Organic Living, Inc (OL)
raising up to $1,000,000
Regulation:Regulation CF
Securities Type:Preferred Stock
Share Price:$0.50

to go
Fragrance of Heaven LLC (FOH)
raising up to $1,000,000
Regulation:Regulation CF
Securities Type:Membership Units
Share Price:$20.00

to go
Outlook Corporate Consulting, LLC (BMD)
raising up to $1,065,000
Regulation:Regulation CF
Securities Type:Membership Units
Share Price:$7.50

to go

Financial smart contract developer could be held liable
The Dow Jones Industrial Average tumbled 546 points
US House approves the Main Street Growth Act

About Mr. Crowd Crowdfunding One-Stop Service Terms of Use Fees and Charges Privacy Policy Cookie Policy The Mr. Crowd University Contact Us


IMPORTANT LEGAL NOTICE: Ksdaq Inc. owns and operates Mr. Crowd (www.MrCrowd.com), a funding portal (the "Funding Portal") registered with the Securities and Exchange Commission (SEC) and a member of the Financial Industry Regulatory Authority (FINRA) [FINRA Funding Portal Members]. By accessing the Funding Portal and any pages on the Funding Portal, you agree to be bound by the Terms of Use and Privacy Policy, as may be amended from time to time without notice or liability. Securities offerings posted on the Funding Portal are limited to Regulation Crowdfunding, Regulation A and Regulation D offerings.
  • Regulation Crowdfunding offerings on the Funding Portal are conducted through Ksdaq Inc.
  • Regulation A and Regulation D offerings on the funding portal are not conducted through Ksdaq Inc.
  • Regulation A and Regulation D offerings are for informational and solicitation of interest (testing the waters) purposes only.
  • Investors must acknowledge and accept the high risks associated with investing in private securities offerings. These risks include holding your investment for periods of many years with limited ability to resell, limited access to periodic reporting, and losing your entire investment. You must have the ability to bear a total loss of your investment without a change in your lifestyle. Funding Portal is only required to conduct limited due diligence on each Issuer and does not in any way give investment advice, provide analysis or recommendations regarding any offering posted on the Funding Portal. Past performance is not indicative of future performance. All investors should make their own determination of whether or not to make any investment in an offering, based on their own independent evaluation and analysis and after consulting with their financial, tax and investment advisors. Prior to making any investment, you will be required to demonstrate your understanding of the speculative nature of investing in such private securities. The securities offered on this Funding Portal can only be marketed in jurisdictions where public solicitation of offerings are permitted; it is solely your responsibility to comply with the laws and regulations of your country of residence. You are strongly advised to consult your legal, tax and financial advisor before investing.

    You can learn more about investing in crowdfunding from the SEC, FINRA or NASAA.

    1000 Corporate Center Drive, Suite 310, Monterey Park, CA 91754

    Copyright © 2018 Ksdaq Inc.