Full Capital Account Convertibility Dangerous: SJM

New Delhi, Sep 5 (UNI) The Swadeshi Jagaran Manch (SJM) today termed as ''illconceived'' and ''dangerous'' a proposed Government move to introduce full Capital Account Convertibility.

Reacting to the S S Tarapore Committee's recommendation in this regard, SJM Convenor Muralidhar Rao expressed fears that the full currency float would be a ''grave risk'' for the economy and expose the country to shocks of the kind experienced in many East Asian and South American economies.

Even the IMF and the World Bank, which had commended full convertibility as a wide system of exchange management in the past, had given up their conviction in such model and begun praising the Indian moderation in exchange management as an illustrative example for other developing nations following the East Asian crisis, he pointed out.

UNI VN LS HT2049