Letters to the editor dated July 12, 2021

This refers to ‘Why the frenzy in crude oil prices may not sustain’ (July 12). While the article attributes absence of geopolitical tensions for prices of crude to remain under control in the near future, the brewing Afghan crisis along with uncertainty surrounding a third wave of Covid have the potential to contribute to a rally in the prices. While OPEC members try to alter the production to maintain price parity in spite of abundant production capacity, non-OPEC countries like the US and Canada have substantial potential to add to the global oil output and come to the rescue of developing countries.

As oil contributes substantially to the import bill of developing countries like India, non-OPEC countries should lend a helping hand in ensuring that crude oil prices do not surge. The US sanctions on Iran, which was offering crude oil at a concessional rate earlier, have played spoilsport as India has totally stopped importing oil from Iran due to US pressure. With domestic fuel prices skyrocketing, geopolitical issues related to US and Iran should not be allowed to come in the way of India importing oil from Iran. The surging domestic oil prices will only add to the overall inflation, putting further pressure on the rupee and interest rates.

Chennai

Apropos ‘Afghan challenge' (July 12), tension in Afghanistan is growing subsequent to the withdrawal of US troops and Taliban taking control of more cities and towns. Pakistan was not able to do anything so far to control the Taliban, and instead became a safe haven for the Talibans.

It is quite appreciable that India is trying to take a lead in the Afghan issue and the External Affairs Minister’s recent visit to Iran is a welcome move in this direction. Russia, which has quite a normal relationship with Afghanistan, too must be roped in to find an amicable solution.

Chennai

The rise of the Taliban in Afghanistan has made the job of protecting our borders tougher. A China-Pakistan-Afghanistan axis will be a nightmare and will test our resolve. The superpowers play their games, according to their own interests, and leave.

What happens to Indian assets in Afghanistan if the Taliban takes over? Hopefully, the bonhomie between the Taliban, Pakistan and China will not last long.

Mumbai

The RBI directive to banks to send employees in sensitive positions on mandatory annual leave is unexceptional. Despite having a transfer policy in place, of shifting officers every three years and award staff every five years, sensational frauds have been reported from banks due to the connivance of employees continuing in the same sensitive department for several years, in gross violation of the policy.

Though a majority of the bankers are honest and hard working, there are always some exceptions, who are exploited by unscrupulous borrowers.

Though credit and market risks are quantifiable with a degree of accuracy, operational risk is not. A single instance of a system, process or people failure can severely dent a bank’s net worth, besides bring irreparable reputational damage. One way of preventing the same is to do a thorough review of the functioning of a bank’s sensitive departments, such as treasury, currency chest and trade finance.

Chennai

Close on the heels of its move to attach Air India assets in the US, Cairns Energy, based in the UK, has initiated steps to freeze Indian government properties in France on the strength of the $1.7 billion arbitration award it received in its favour from The Permanent Court of Arbitration at the Hague over a retrospective tax dispute.

While none can question the sovereign right of an independent country like India to levy taxes, retrospective taxes can hardly help it to position itself as a investor-friendly destination.

Sholavandan, TN

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