Hawala Operators Demand Control on Rupee Volatility
26 July 2013
Mumbai: Extreme volatility in intra-day trade of the rupee is threatening to wipe out the Hawala operators.
“We have been hit hard.” Said Naresh bhai Ranchhorji, the President of All India Hawala Operators Association in Dongri, Mumbai today. “The business is not down, but it has become extremely risky because of very high movement of rupee during a given day.”
“Take for example the month of June; the difference between the low and the high of the day in rupee value has been often close to a rupee.” Said Naresh bhai who also goes by the trade name alias “Noora” to escape the law enforcing agencies. “This is too high. We have never had to deal with such volatility.”
But what’s the problem with the volatility? You in any case cut the deals back to back? Don’t you? Asked Funnynomics correspondent.
“We do..but given the nature of our business…deals often take more time to finalise. Due to this extreme volatility of rupee, the initial quote offered by the Hawala operator to a remitting client becomes farcical by the time the client brings cash and the operator cuts the deal with his overseas arm.”
So what is your demand? Asked Funnynomics correspondent.
“Stabilise the rupee. Prevent the wild swings. It is a national currency, not a Z-group scrip. Make sure that the rupee trades in a tight band of say 50 paise. You tell me....if these RBI officers can’t even control that, what is the use of paying them crores worth of salaries..We are tired of listening to Mr. Chidambaram’s “Don’t Panic” songs and Raghuram Rajan's bhajans “government got several options”…we want some sort of stability in the rupee.”
"But volatility is part and parcel of the trading markets…finance minister can’t stop it overnight…" Funnynomics correspondent - who was clearly displeased by Noora’s remarks about the country’s esteemed Finance Minister and Chief Economic Advisor – said dryly.
“Then what for they get so much perks…for mismanaging the rupee..When Mr. Chidambaram became the FM the rupee was 44…today it is 60…who gets the blame..if not the captain? You media wallahs used to call Chidambaram-Manmohan Singh the “Dream Team”… look at the nightmares they are giving us….All along these people have been telling us that the economy of the country is in great shape…bollocks…the shape was great so long as the FII dollars were pouring…Madame..to build the foundations of your economy on borrowed dollars is not intelligence…its idiocy…today these people are simply flying around begging for FDI and FPI...but what were they doing when CAD was worsening...CAD has not risen overnight afterall...Fiscal deficit has not ballooned in an instant either....”
OK...But do you have any solution in mind? Funnynomics correspondent cut him short, fearing he will go on and on against the respected finance minster.
“We demand a stable rupee..and if they can’t ensure that…then they must allow us a hedging mechanism. After all, we are part of the trade. We belong to the very market. Why are we denied a hedging mechanism?” Noora walked up to the door of his office and released a gob of paan-spit. “A bite-size exporter exporting ½ million dollars worth of merchandise is allowed to hedge his receivables but not us who everyday deal in multi-million dollar deals….Bahut naa-insafi hai yeh.”
And what kind of hedging mechanism you have in mind? Asked Funnynomics correspondent.
“There is no need to reinvent the wheel.” Said Noora while lighting up a cigarette. “Rupee is already traded on Indian bourses. Simply allow us to hedge it there. Allow us to open accounts. Tone down your KYC requirements...don’t ask us to submit Xeroxes of all our assets and identities..or don't book us in FEMA.”
“And finally… allow rupee trading round the clock. You know that trade goes on round the clock. So why the rupee trading is limited to office timings?”
“Just one thing..somehow make our country’s finance managers answerable not to Parliament but to Arnab Goswami..he will straighten them.”
(Disclaimer: This news report is pure fiction, a produce of fertile imagination, and none of the people, organisations, NGO, politicians, office bearers, or government officials mentioned on this page have anything to do with this topic, subject or report. Entire fabrication is meant for simple fun.)
Did you like this story?