Well, that escalated quickly...
With the Rupee accelerating its declines to ever lower record lows against the dollar,Indian authorities have stepped up capital controls, focusing on curbing demand in the gold 'exit' route.
4 days ago,there were no signs of import duty hikes as Prime Minister Narendra Modi issued a rare weekend appealurging citizens to forgo gold purchasesas well as unnecessary foreign travel in order to help hold up the currency..
2 days ago,tariffs were more than doubledon gold and silver imports to 15% and 6% respectively.
And today, they are doing even more with India nowtightening the advance authorisation route, effectively capping how much gold individual exporters can bring in through that channel.
A government notification stated that imports of bullion exceeding 100 kilograms would be subject to prior authorization, adding that any subsequent imports would only be granted after exports equivalent to 50% had been carried out.
The notification also introduced stricter checks for first-time applicants seeking permission to import gold under the scheme.
The government has also linked future import approvals to export performance.
India, the world’s third-largest oil importer, has been hit hard by the inflationary shock caused by energy disruptions in the Persian Gulf.
Higher import bills havedriven sharp foreign-exchange outflows,pushing the rupee down to a record low and prompting the Reserve Bank of India to step in and sell dollars.
Source: ZeroHedge News
