Dollar still irreplaceable
This refers to the editorial ‘Empty talk’ (April 17). Even though the US is no more an economic powerhouse with China upstaging it on various economic parameters globally, none of the currencies, including the Chinese Yuan, is in a position to replace the dollar as a dominant currency. The clout the dollar enjoys emanates from the external strength the currency derives rather than intrinsic factors. One, the dollar is still preferred as an invoicing currency in trade by most of the countries and, two, the dollar is chosen as a reserve currency by more than 60 per cent of countries in the world. This shows the confidence and emotional attachment developed by global powers towards the currency. The euro, which at one time had challenged the dollar, suffers from economic inequality among Eurozone countries with lack of consensus on economic policies and interests binding all countries in Europe. China’s political system does not induce credibility in the global arena.
Srinivasan Velamur
Chennai
Weak alternatives
On many a count, the dollar is no longer the bastion of international financial security that it was. Its debt, long been larger than its GDP, could touch 250 per cent by 2035. But the dollar’s pre-eminence will continue, thanks to the depth, spread and transparency of the US stock market, the euro remaining unsteady and the Chinese renminbi, a credible alternative, not fully convertibility.
R Narayanan
Navi Mumbai
Financial inclusion
This is with reference to ‘Mudra Yojana pushing India towards more inclusive entrepreneurship’ (April 17). The government has been implementing financial inclusion schemes vigorously through public sector banks, which have brought crores of people into the banking system. Several government welfare schemes have also been implemented through these public sector banks, which include liberal lending to farmers and non-farmers for agriculture and non-agricultural activities.
The recent financings by PSBs under the ‘Mudra loans’ scheme have helped transform society to a great extent.
Katuru Durga Prasad Rao
Hyderabad
IPL auction prices
This refers to ‘Are IPL auction prices truly absurd?’ (April 17). When a franchise shells out a lot of money for a player, it does so based on the player’s recent performances and what he can bring to the table. For instance, Sam Curran, who was sold for a whopping ₹18.5 crore, was given so much money because he can turn around a match with his all-round abilities. But there is no guarantee whether a hefty price tag will translate into performance.
Bal Govind
Noida
Right move by SBI
This refers to ‘SBI files plea in SC seeking clarity on fraud classification judgment’ (April 17). State Bank of India’s plea in the Supreme Court, seeking clarity on its March 27 judgment on fraud classification of borrowers, seems to be well-timed and well-intended too.
Notably, SBI has also sought its nod about banks being allowed to decide the time frame of the adjudication to avoid delays in the absence of any time stipulation.
However, it is felt that Indian Banks’ Association (IBA), representing all its member banks, ought to have taken upon itself to approach the apex court in respect of various ‘crucial’ issues.
SK Gupta
New Delhi