Glossary Terms

03

Dec'17

Current Account Convertibility

Current account convertibility means freedom to convert domestic currency into foreign currency and vice versa for trade in goods and …

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03

Dec'17

Currency Convertibility

Currency convertibility refers to the freedom to convert domestic currency into other internationally accepted currencies and vice versa. Exporters, importers, …

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03

Dec'17

Tobin Tax

Tobin tax is a tax imposed on the speculative and quickly mobile short-term capital or hot money to discourage their …

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03

Dec'17

Capital controls

Capital controls means restrictions on the entry and exit of foreign capital. Logic of capital control is that some types …

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03

Dec'17

Speculative attack

Speculative attack is massive selling of domestic currency by foreign and domestic investors to acquire foreign currencies. Often this type …

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03

Dec'17

Masala Bonds (Rupee Denominated Bonds)

A rupee denominated bond (or sometimes referred as masala bond )is a bond issued by an Indian entity in foreign …

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03

Dec'17

India Depository Receipt (IDR)

India Depository Receipt is an instrument in the form of a depository receipt (DR) created by the underlying equity shares …

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03

Dec'17

Short term capital

In the balance of payment account, short term capital refers to that foreign capital which is short term in duration …

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03

Dec'17

Hot money

Hot money refers to funds that are quickly mobile, searching for immediate profit that travels across the border. Hence, hot …

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03

Dec'17

Foreign exchange market

Foreign exchange market is the place where currencies are exchanged or traded for the other. Foreign exchange market is scattered …

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