In January 1991, India’s foreign exchange reserves had depleted to $1.2 billion only. Then India had taken first loan in SDRs from the IMF on 18th January 1991 amounting to $551.93-million. But again by June 1991, these reserves too had dried up and the exiting reserves was only enough for three weeks of essential imports. Thus India had to pledge 67 tonnes of gold reserves to secure fresh IMF loan and India was forced to take further loans from the IMF on 13th October 1991 of $1,656-million in SDRs and on 9th November 1981 of $3.9-billion in special drawing rights .
In August 2013, there is fast running speculation, that as India is facing deep financial crisis, that has seriously aggravated by the squeeze in global liquidity, the country may again forced to take recourse this event to secure a loan from International Monetary Fund (IMF) by pledging a certain quantity that may be around 500 tonnes of gold, and this view has reached reached the headquarters of the multilateral institution IMF in Washington.
IMF Communications Department Director Gerry Rice, in a press briefing said, "there was a lot of speculation about India coming to the IMF, possibly to sell its gold reserves to boost its currency" as stated on the IMF website. He said,“Maybe just stepping back on the situation in India, the combination of large fiscal and current account deficits, high and persistent inflation, sizable un hedged corporate foreign borrowing and reliance on portfolio inflows are longstanding vulnerabilities that have now been elevated, as global liquidity conditions tighten, and this has clearly affected market confidence,”.
Do India Government have a clear visionary road map for the dismal economic situation fast unfolding ? Will they issue a White Paper or Status Report on the currency related economic health of the country, that may be essential for the knowledge of the people as well for the restoration of the lost confidence of investors ?
Don't you understand and accept that any Economy needs a clear picture away from the haze or suspicion, for its time bound future planning and actions ?