By Sreekumar Raghavan KOCHI, INDIA (Bullion Street): India's love for Gold is giving sleepless nights for India's Finance Minister Palaniappan Chidambaram and his reign has seen the maximum number of measures being taken to curb the insatiable appetite for gold in the country. Import duties were raised from 2% to 8% and the Reserve Bank of India (RBI) has put in place a number of measures to curtail gold imports.
The Reserve Bank of India continues to hold $21.55 bn in gold reserves as per latest weekly update issued on Friday and central bank buying in various countries continue to support gold.
However, not many people may have forgotten the fact that it was the nation's gold reserves that helped tide over a balance of payments crisis in 1991 when the nation had to phyically ship its reserves of gold to London to stand collateral for an International Monetary Fund loan failing which there would have been a default on loan payments. ...
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