Government to issue quasi-sovereign bonds, says Chidambaram

He said that the CAD concerns are still reflecting on the rupee

In an effort to arrest the rupee fall, the government will issue quasi-sovereign bonds soon, finance minister P Chidambaram said today. 

 

Addressing the Parliament, Chidambaram added that the current account deficit concerns are still reflecting on rupee and the Centre would do more to reduce the current volatility.  

To check the volatility in forex market, the Reserve Bank of India (RBI) said in a statement last week that it will sell government bonds worth Rs 22,000 crore every Monday.  

 

While indicating that the apex bank measures are yielding results on the rupee front, Chidambaram added that the government expects to contain CAD in FY14 at around $70 billion or at around 3.7% of GDP. 

Chidambaram also said that the government will reduce import of gold, silver, oil and non-essential goods to restrict Current Account Deficit.