OM DENNE EPISODE
In the summer of 1991, India undertook an action that no sovereign nation desires: it pledged its gold reserves. Under strict confidentiality, approximately 47 tonnes from the Reserve Bank of India’s vaults were transported abroad and deposited with the Bank of England and the Bank of Japan. This measure secured a $405 million loan, giving the country a temporary reprieve.Critical issue is whether a country’s assets comfortably exceed its liabilities and timing of these obligations. RBI’s data allows for a precise evaluation of this criterion. Watch #Economix with ThePrint Consulting Editor (Economics) Bidisha Bhattacharya:
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