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CHROME IS RECOMMENDED BROWSER FOR IWB

India Bans All Gold Coin Imports, Increases Capital Controls

Not satisfied with raising import tariffs on gold and putting in place jarring new FX flow capital controls, it seems the war on a weakening Rupee continues. We previously discussed the unintended consequence of such actions – including the rise of the gold smuggler – but the latest total ban on the importation of gold coins and medallions is edging India closer and closer to the Argentinian edge of Cristina Fernandez totalitarianism (after the initial ban on sales in June). In an effort to “moderate outflows” of Rupee, the Indian central bank slashed the amount of money families can send out of the country per year to $75k (from $200k) and limited overseas investment to 100% of net worth (from 400%). “We will leave no stone unturned” to control the current account deficit and stabilize the rupee, the finance minister warned; which of course removes any hope that monetary easing to revive growth will occur anytime soon.

 

Since the Fed began discussing Taper – the Rupee has weakened almost 15% (3 months)…

http://www.zerohedge.com/node/477636

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