https://www.taxtmi.com/news?id=14509 Capital account convertibility permits unrestricted currency conversion for cross border asset transactions and exposes the economy to heterogeneous flows-from long term productive investment to short term volatile portfolio movements. Its benefits include broader financing channels and potential efficiency gains; its risks include sensitivity to macroeconomic conditions, sudden reversals, exchange rate volatility, and crises from unhedged foreign currency liabilities. India has progressively liberalised FDI and portfolio access while maintaining prudential limits on foreign currency debt and restricting speculative offshore rupee trading. Full convertibility should be pursued incrementally, contingent on fiscal consolidation, price stability, financial sector health, market depth, and stronger supervision. en-us Mon, 18 May 2015 16:20:06 +0530 Mon, 18 May 2015 16:20:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/news?id=14509 Capital account convertibility permits unrestricted currency conversion for cross border asset transactions and exposes the economy to heterogeneous flows-from long term productive investment to short term volatile portfolio movements. Its benefits include broader financing channels and potential efficiency gains; its risks include sensitivity to macroeconomic conditions, sudden reversals, exchange rate volatility, and crises from unhedged foreign currency liabilities. India has progressively liberalised FDI and portfolio access while maintaining prudential limits on foreign currency debt and restricting speculative offshore rupee trading. Full convertibility should be pursued incrementally, contingent on fiscal consolidation, price stability, financial sector health, market depth, and stronger supervision. News - Mon, 18 May 2015 16:20:06 +0530 https://www.taxtmi.com/news?id=14509