Gold Chain

 For the last eighty years US Dollar has been at the commanding heights of the global economy as a powerful medium of exchange and store of value in the entire world which was universally accepted for transactions ranging from goods , services,capital flows and financial investment.On the contrary as  implied  the word Dedolarisation itself refers to the process of reducing reliance of US Dollar by countries as a medium of exchange, unit of account or as a reserve currency.Dedolariisattion make dollar less indespensible in international trade, stripping its use in trading of oil/ and other commodities and progressively substituting US  dollar with other currencies, gold  or alternate arrangements .In any case dependence on Dollars for the forex reserves, purchasing dollar denominated assets etc would be curtailed progressively.  It may be recalled here that historically the  US Dollar came into prominence through displacing  the  earlier domi...

 In simple terms black economy is referred as unaccounted economy or under ground/ unreported /parallel  economy.Its operation is based on unauthorised money or assets that are utilised for parallel or illegitimate activities like crime, smuggling,drug trafficking, terrorist activities, money laundering, real estate,corruption etc.While tax evasion refers to non payment of tax due to the Government, tax avoidance refers to taking advantage of existing loopholes in the system to avoid payment of taxes- both generate black money.Money laundering on the other hand is the process by which unaccounted (black) money is converted into legitimate (white) money and vice-versa. In practice money laundering people separate the money earned (illegally) from its source,mix it with white money and route it back into the source. Round tripping is another method whereby people route black money to  tax havens like Mauritius Switzerland, Singapore, Bahamas Cayman Islands etc (to avoid tax...

 Reserve Bank of India's recently released Annual Report 2022-23 elaborated on the problems and prospects of India's macroeconomic scenario highlighting review of the economy, monetary policy, financial inclusion, financial markets, Management of foreign exchange and reserves, currency management and maintaining economic growth and financial stability.The impact of volatility engulfed in financial and capital markets on account of the failure of  some banks in  advanced economies in March 2023 have gradually subsided.But an uneasy calm still persist in the global economy with weak prospects for 2023 and 2024, as a result of Ukraine war elevation of food and energy prices etc.As of now inflationary pressures declined in commodity market partly  normalising supply chains.Amidst turbulent world economic environment, India has largely experienced macroeconomic and financial resilience with a steady pick up in growth momentum.  Despite strong global headwinds domesti...

Historically cross border transactions originated in the form of barter system which means mutual exchange of goods and services from one country to the other depending on  the availability and demand for various goods and services in respective countries(for instance wine and clothe between Portugal and England or dates and pepper between Arabs and Malabaris etc). However barter system failed to operate when quantum of goods and services transacted multiplied and gradually financial transactions gathered momentum, and cross border payments became financial transactions between the payer and the recipient who are based in separate countries.Such transactions covered retail , whole sale  and remittances payments as well. Consequently the development of cross border payments also witnessed radical changes from traditional barter system to modern fintech system impacted primarily by  money in  its different variants catering to the needs of primary, secondary and contin...