strategy

Strategic Move- India Buying Gold

Yesterday I read a news in business world, that reserve bank of India are buying gold from IMF and its quantity is huge, 200 tonnes against $6.7 billion.

This is strategic move and may be give some benefit to the India like-

• By this move Indian gold reserve will increase and it will reach near about 550 tonnes, means we will strong economically, this gold are buying against foreign exchange amount.

• It will increase India goodwill front of world, and new opportunities will come, because when we will economical strong our financial power also increase, so we will get sound relation with financial institution of the world.

• After this move our gold holding will move 6 % from 4 % of foreign exchange, it is less compare to develop country but good news that , it is four times of china.

• Come to gold market, by this move internationally gold rate will increase, so demand of gold will increase, and will also increase in India, so when people will buy the gold from market and market will buy from RBI, so money will come in market and economy growth will increase.

• When people buy the gold, they will become financial strong so our country will become internally strong.

• One more move, move towards diversification, we are depended on dollar, by this way somehow, its dependency will reduce.

(Source- business world)