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@deepakshenoy you have hated gold for a long time. that is bad advise given that the US government debt explosion is upon us

Selling gold outside India is good because the western countries where the gold is stored, are not our friends. Within India, gold sales can be used to offset imports; RBI can sell to jewellers. Indians owning gold is better than the RBI owning gold. x.com/deepakshenoy/status/2086…

@deepakshenoy We should be repatriating all our gold

@deepakshenoy ₹3.5 lakh crore added to the system. At some point, "liquidity" stops being fuel and starts becoming a problem.

@deepakshenoy Great analysis 👍🙏

@deepakshenoy Two massive benefits to the system from FCNR scheme is shifting the overnight operating rate from higher to the lower end of LAF corridor 5-5.5% and USD/INR push back to 94.65-95.35 from 96.65-97.0!

@deepakshenoy RBI can sell bonds also

@deepakshenoy But short term rates are not coming down. Infact there has been hardening in pricing

“Wait…did you just say sell gold?” If liquidity is the drug, selling gold to manage it feels like taking away the syringe from an addict - only to trigger withdrawal and make everyone ask for the next fix. And the FCNR inflow is hardly free money either. It’s borrowing from our future selves to get a liquidity high today. So perhaps the real problem isn’t the gold. It’s the addiction to liquidity and the bill eventually comes due.

@deepakshenoy Kuch bhi logic nahi hai is suggestion ka! Apples and oranges!

@deepakshenoy It is best scheme for NRIs. Will prove as disastrous for the govt as SGB. Tughlaq keeps making one mistake after another but sab changa si.

@deepakshenoy That’ll minimise sterilisation cost

@deepakshenoy FCNR isn't permanent liquidity — the deposits mature and the rupees walk back out with the dollars. RBI drains excess via VRRR auctions, not gold sales. Gold sits on the reserves ledger; it isn't the liquidity tap.