Can Temple Gold Help The Rupee? - India Real Time - WSJ

Can Temple Gold Help The Rupee? - India Real Time - WSJ:

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The Padmanabhaswamy Temple in Thiruvananthapuram, Kerala, where enormous quantities of gold were found in the vaults in July 2011.

At a time when nothing seems to be able to stem the Indian rupee’s decline, a novel idea to boost the currency is doing the rounds: use the tons of gold stashed away in people’s homes and in temples.

The rupee sank to an all-time low of 65.56 for one U.S. dollar on Thursday (before recovering slightly Friday,) partly on fears that India will find it tough to finance its wide current-account deficit; the gap reflects the fact that India imports more than its exports.

To lower the deficit, the Indian government has announced several steps in recent weeks to reduce its imports, such as raising the import duties on gold."

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