Page 2 - Cad
Current account deficit likely to be lower at 3% this fiscal: SBI report
State Bank of India has pencilled in lower current account deficit at 3 per cent for this fiscal as against the minimum consensus of 3.5 per cent, citing rising software exports, remittances and a likely USD 5-billion jump in forex reserves via swap deals. Every USD 10 increase in crude prices impacts the Current Account Deficit (CAD) to the tune of 40 basis points while the same on fuel inflation is 50 bps and also results in 23 bps decline in growth, according to Soumyakanti Ghosh, the chief economic advisor at SBI. CAD has a counter cyclical shock absorber, he said in a report on Thursday. Exchange rate is the major contributor to software exports growth and 40 per cent of its variation is explained by exchange rates. "If we translated these numbers in actual terms, every Re 1 fall against the dollar leads to an increase in software exports by USD 250 million". This, along with an expected USD 5 billion-forex reserve accrual by way of swap transactions and higher remittances, wi
 "Current account deficit likely to be lower at 3% this fiscal: SBI report")
Is India's external account becoming vulnerable?
Rising global commodity prices have widened India's current account deficit to 2.8% of GDP in Q1. But RBI Governor says, forex reserves compared favourably with most peer economies. Here's more
 "Is India's external account becoming vulnerable?")
Current account deficit widens to 2.8% of GDP in Q1; trade deficit jumps
Services exports, remittances show firm momentum in Q1
 "Current account deficit widens to 2.8% of GDP in Q1; trade deficit jumps")
CAD may jump over 5% of GDP in Q2FY23, relief likely in the next fiscal
The current account deficit may have widened to 3.4% of the gross domestic product in the first quarter against a surplus of 0.9% a year ago
 "CAD may jump over 5% of GDP in Q2FY23, relief likely in the next fiscal")
RBI, bond market players discuss liquidity strategy as surplus dwindles
RBI asked for mkt views on BoP, impact of 75-bps rate hike by US Fed
 "RBI, bond market players discuss liquidity strategy as surplus dwindles")
CAD may touch nine-year-high in Q1FY23 as net exports soar
India's CAD stood at 1.5% of GDP in the March quarter of FY22 compared to a CAD of 2.6% of GDP in the preceding quarter of FY22
 "CAD may touch nine-year-high in Q1FY23 as net exports soar")
CAD of 2.5-3% can be sustained without external sector crisis: RBI DG Patra
India's economy is predicted to overtake that of the US by 2048, said Patra
 "CAD of 2.5-3% can be sustained without external sector crisis: RBI DG Patra")
Experts expect some inflation, CAD relief after US Fed hikes rates
MPC will be guided more by domestic inflation-growth dynamics than US central bank measures, they say
 "Experts expect some inflation, CAD relief after US Fed hikes rates")
Rupee won't go into free-fall even if CAD widens to 3-3.5%: BoA's Mehta
RBI needs to be fourth buyer in the bond market, says senior executive
 "Rupee won't go into free-fall even if CAD widens to 3-3.5%: BoA's Mehta")
Rupee closes shy of 80/$ as RBI shields currency, exporters sell dollars
The rupee settled at 79.99 per dollar on Wednesday - a fresh closing low for the Indian unit versus the greenback
 "Rupee closes shy of 80/$ as RBI shields currency, exporters sell dollars")
Rupee at 80: Little relief on the cards from high trade deficit
Due to global risk aversion on the back of geo-political tensions and aggressive policy tightening by the Fed, the dollar has appreciated against most currencies, including the rupee
 "Rupee at 80: Little relief on the cards from high trade deficit")
Global recession fears may ease inflationary pressures: Govt report
Review released by ministry also said that global headwinds would continue to pose downside risk to growth as crude oil and edible oils, remain major imported components
 "Global recession fears may ease inflationary pressures: Govt report")
CAD as percentage of GDP: Nowhere near 2012-13 level, yet worrisome
If up to $50 billion is withdrawn from forex reserves to finance CAD, the country would still be able to meet nine month's imports. Any withdrawal beyond this could pose a problem
 "CAD as percentage of GDP: Nowhere near 2012-13 level, yet worrisome")
RBI takes steps to attract foreign flows, says growth prospects stay strong
RBI said that despite the headwinds from geopolitical developments, elevated crude oil prices and tighter external financial conditions, high frequency indicators point to an ongoing recovery in sever
 "RBI takes steps to attract foreign flows, says growth prospects stay strong")
CAD reduces sequentially to 1.5% of GDP in Q4 as trade deficit moderates
The current account was in deficit to the tune of $ 8.1 billion (1 per cent of GDP) a year ago (Q4 of FY21)
CAD will be sustainable, can be financed by normal capital inflows: RBI Guv
The number of unicorns, or new businesses valued at over $1 billion, is rising rapidly
 "CAD will be sustainable, can be financed by normal capital inflows: RBI Guv")
Ukraine war: Icra sees serious downside risks to growth; CAD to cross 3.2%
The highest CAD was in FY13 when it crossed the 4.8 percentage points and the second high was in FY12 when it was at 4.3 per cent
 "Ukraine war: Icra sees serious downside risks to growth; CAD to cross 3.2%")
India's current account deficit narrows to $1.4 bn in December quarter
The CAD is a critical indicator of the macroeconomic health and represents the gap between the overall foreign exchange expended and received in the economy.
 "India's current account deficit narrows to $1.4 bn in December quarter")
Top 10 biz headlines: Forever 21 to shut shop, core sector output, and more
From Forever 21 filing for bankruptcy to core sector output declining by 0.5%, here are the top 10 business headlines on Tuesday
 "Top 10 biz headlines: Forever 21 to shut shop, core sector output, and more")
India's current account deficit narrows to 2% of GDP in June quarter
Private transfer receipts, mainly representing remittances, rose 6.2 per cent to $19.9 billion
