However, in the debate over gold, Meghnad, Lord Desai has pitched in his bit. His Sunday column is titled “The Golden Hindustan,” and he says this of the RBI’s decision to buy 200 tonnes of gold from the IMF:
It was India’s gentle way of saying that the dollar was on a downslide and indeed needed a healthy devaluation in the interests of the global economy. But it also gave notice to the G20 and the IMF that if the global economy was to wean itself off the dollar as the sole key currency, there was no viable substitute in sight except for gold.
I also found an excellent feature story on Rediff.com listing out the world’s largest gold hoards. India is now 11th on the list. Do click right through to India, where they say:
Analysts feel that it is a very smart move as by buying IMF gold, New Delhi is shoring up its bullion reserves and slowly trying to hedge its bets on the US dollar which has been losing value against other currencies.
So much for ET.
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