Letters to the editor dated July 26, 2021

This has reference to ‘The flip side to building forex reserves’ (July 26). Central banks often face the problem of excess forex reserves and they can neither liquidate them nor invest them fully as there could be short-term requirements. On the other hand, the returns are to be maximised.

In this backdrop and under Indian conditions, the RBI may utilise the funds for capital goods imports and infrastructure development though external and internal debts, real estate, equity, etc., are more attractive but risky.

Further, wherever the spending has to be by converting to rupee the issue of money management will also be involved.

Under these complex situations, using for capital goods imports or for some alternative investments may be explored.

Import of gold for backing gold bonds is another long-term call which the regulator can take.

However, outsourcing the sensitive investment management is risky and instead the regulator can have a subsidiary company to specialise in such advisory services.

Chennai

This refers to the editorial ‘Safety first’ (July 26). With the enforcement of a lot of security measures in vogue, the financial security available to the ageing population to enable them lead a comfortable life is not adequate.

The deployment of the funds ensuring their safety, quality and earnings matters a lot and, therefore, the Pension Fund Regulatory and Development Authority must not compromise the safety of the funds for the sake of higher returns.

However, since the returns are also equally crucial to facilitate the distribution of pension, the fund managers need to be prudent while deploying the funds.

A crash in the prices of the stocks and debt securities is inevitable because of the persisting crisis in the recovery of the economic activities and due to the spill-over effects from the global markets.

The PFRDA must strengthen its regulations and oversight on the deployment of pension funds to avoid monetary losses that may ensue due to the prevailing potential risks related to the markets.

As the nation does not have a robust social security setup as compared to the developed economies of the world, the government must bestow priority to safeguard the funds meant for the social well-being of the ageing population.

Changanacherry, Kerala

The opposition has been stalling the proceedings of the Monsoon Session of Parliament over the issue of alleged use of Pegasus spyware for snooping prominent citizens of the country. The Israel made Pegasus spyware is more sophisticated and only a sovereign country or its agencies can have an access to it. The fact that those who were not in the good books of the BJP-led government at the Centre were allegedly targeted and spied upon using Pegasus spyware merits an independent probe.

Rather than dragging its feet on this issue with grave implications on citizens’ right to privacy and the country’s national security, the Centre has the bounden duty to answer convincingly the question whether it used Pegasus spyware for snooping of its citizens or not without any delay.

Sholavandan, TN

Apropos ‘Thriving in a pandemic-induced new normal’(July 26), conventional wisdom will not work in the current atmosphere. Adopting a risk-friendly mindset is essential and policymakers must not sticky to copybook style of managing the economy. Indians deserve all appreciation for bearing the agonies that the pandemic has thrown up and moving forward with grit and determination.

Sivakasi, TN

In his Mann Ki Baat , the Prime Minister spoke about water conservation. Like oil, water is the next resource over which many wars may be fought. Water is a universal solvent, but we have to dissolve water-sharing issues amicably before they reach boiling point.

Chennai

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