Thursday, October 25, 2012

How viable is a common currency for SAARC nations?

.......Those opposing this move argue that it will result in the loss of sovereign control over monetary and exchange rate policies.These policies would then be formulated by some version of a SAARC central bank which would subsume most of the policy-making prerogatives of the present national central banks. Bluntly put, the RBI (along with the finance ministry) would no longer determine India's monetary and exchange rate policies............

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