Investor Presentaiton
We had to pledge Gold to raise FX Loan in
90s
Ckotak
Mutual Fund
In July 1991, the RBI pledged 46.91 tonnes of gold with the Bank
of England and the Bank of Japan to raise $400 million but the
government was quick to repurchase it months later as the
situation improved.
Written by Shaji Vikraman
Twenty-five years ago, in January 1991, as India struggled to finance its essential imports, especially
of oil and fertilisers, and to repay official debt, senior officials managing the economy in the Chandra
Shekhar government reached out to influential members of the global financial system. It was in
difficult circumstances that they did so: poor economic management in the preceding years had led
to a rapidly deteriorating environment, made worse by the Gulf war that led to a spike in oil prices.
Source: Indian Express
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