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Rupee hits new low again
Rupee hits new low again Issac John / 20 August 2013 The battered Indian rupee plunged to a record low of 63.30 to the dollar on Monday amid indications that its seemingly inexorable fall will continue for some more time as attempts by the Reserve Bank of India, or RBI, to shore up its value appeared ineffective. Silver plates in the form of Indian rupee notes at a showroom in New Delhi. Some analysts predict that the currency may even hit 70 against the dollar in a matter of weeks. — Reuters The partially-convertible rupee tumbled 2.3 per cent on Monday, its biggest single-day fall since September 22, 2011, leaving non-resident Indians in the Gulf in a quandary — whether to transfer their money now or wait for further exchange rate gains. Most money exchange houses in the UAE reported only normal remittance business as uncertainty persisted about a further decline in rupee value with some analysts even predicting that the relentless decline could even hit 70 against the dollar in weeks. While efforts to prop up the rupee, which has tumbled more than 12 per cent against the dollar this year, have thus far proved ineffective, bond yields surged to five-year highs threatening to drive the Asia’s third-largest economy towards a full-blown crisis. Currency analysts believe the rupee could overshoot to 64 to 65 to the dollar in the next few months and then could come back provided the recent measures by the RBI — including tightening of rules on how much citizens and companies can invest abroad, and curbing gold imports — prove effective while other key initiatives such as the opening up of foreign direct investments and trimming of fiscal and current account deficits succeed. Currency dealers said persistent dollar demand by banks and oil refiners contributed to the rupee’s latest fall. They expect further dollar selling by the RBI as well as other measures to support the currency. World Bank chief economist Kaushik Basu, describing the country’s problems were “overplayed,” said India was not in danger of a full-blown economic crisis. India is nowhere near the 1991 crisis when India had to seek a bailout from the International Monetary Fund in what was considered a national humiliation, he said. “The gloom is being overplayed.” Analysts believe that apart from deteriorating economic troubles at home, an exodus of foreign investors on concerns over a possible scale back in quantitative easing by the US had aggravated the currency’s woes. The government is struggling to reduce its current account deficit, which currently stands at 4.8 percent of gross domestic product, or GDP, while attempts to push through structural reforms by relaxing restrictions on foreign direct investment have seen little progress. Net outflows from Indian bonds and stocks total $11.4 billion since late May. Still, India has reserves to cover about seven months of imports, compared with just three weeks in 1991. India’s bond market has borne the brunt of the outflows, with foreigners taking out around $10 billion since May 22. The benchmark 10-year bond yield surged 35 basis points on the day, to 9.23 per cent. Equity markets have remained relatively insulated with outflows from the cash market at less than $100 million on Friday, when the main stock benchmark fell about four per cent, the most in nearly two years. Heightened selling in equities could exacerbate the rupee’s fall, dealers said. Meanwhile, Mumbai’s main stock index fell 1.6 per cent on Monday. The yield on India’s 10-year benchmark government bond climbed as high as 9.26 per cent, its highest since August 1, 2008, before the Lehman Brothers collapse. Many economists believe the RBI’s liquidity tightening will stay in place longer than initially expected, and many have cut their economic growth forecasts for the current fiscal year. However, amid this worsening scenario, there are many optimists who still believe in the Indian growth story. They expect the economy to pick up pace in the coming years as it is on track to cut deficit to around three per cent of GDP by 2016. The country is also on target to register a growth of six per cent in 2013-14 and in the next year it will go up to seven per cent. India, which is among the three large economies that are able to record above five per cent growth amid a gloomy global scenario, is also all set to emerge as the fifth world economic power by 2020-25. — issacjohn@khaleejtimes.com Continue reading
Law to ban smoking in vehicles with children
Law to ban smoking in vehicles with children (Wam) / 20 August 2013 The anti-tobacco federal law, which will come into force next year, will ban smoking in private vehicles if a child younger than 12 years is present in the car. The Ministry of Health has announced the executive regulations of the anti-tobacco flaw, which were approved by His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, in the Cabinet’s Resolution No. 24 issued on July 21, 2013. The said resolution will come into effect six months from the date of its issuance. The regulations are part of the government’s efforts to establish an effective national anti-tobacco strategy to protect public health. The ban on the vehicles aims to protect children from being exposed to cigarette smoke. The law also aims to reduce smoking among youth. A study carried out in Abu Dhabi showed that 28 per cent of children aged 15 years and younger, are smokers, while 30 per cent of people aged 18 and above are smokers. The law bans any content that advertises tobacco products, such as newspaper advertisements, TV commercials and animations. It also bans importing tobacco products that are not in line with technical standards set by the UAE, and any violations regarding such imports can lead to a one year prison sentence and a fine ranging from Dh100,000 to Dh1 million, in addition to the confiscation of products. The law also provides specifications on the packaging of tobacco products. All products must now display a large warning label on the front to raise awareness on the dangers of tobacco, and not to mislead them. Violators will be fined Dh100,000 to Dh1 million, and the fines can be doubled if the offence is repeated. Tobacco products cannot be displayed near items marketed for children, or sportswear, health, food and electronic products. Tobacco products are also forbidden to be sold in locations that are 100 metres away from places of worship, and 15 metres away from kindergartens, schools, universities and colleges. Shisha cafes will also have to be at least 150 metres away from residential areas. The regulations also specify that these cafes’ working hours will be from 10am to 12pm. Shishas will not be served to customers younger than 18 years of age, and the cafes will be forbidden from delivering shishas to apartments. Growing or producing tobacco for commercial purposes will also be forbidden, and current manufacturing plants have been given a grace period of 10 years to sort out their situation, and tobacco farms have been given a two-year grace period. The UAE ratified the World Health Organisation’s Framework Convention on Tobacco Control (WHO FCTC), the first international treaty negotiated under the auspices of WHO, in November 2005. The UAE anti-tobacco law was drafted by the Ministry of Health in 2006. In December 2009, the UAE issued its own federal anti-tobacco law. Continue reading
Parking woes hit Sharjah residents
Parking woes hit Sharjah residents Lily B. Libo-on / 20 August 2013 Parking woes continue to haunt residents and expatriates in the emirate due to the scarcity of free parking — prompting some families to stay at home rather than pay to park their cars. With just few “kacha” (temporary) areas mostly left for free parking, residents are facing the problem of moving their cars in the morning to go to office with often hundreds of cars crammed into the small kacha areas. The tight parking spaces mean some cars get damaged by others, whose drivers due to lack of space, sometimes, sideswipe their cars and drive away. The hunt for a car park also render people late for appointments or meetings, as sometimes they have to spend more than an hour waiting for someone to vacate a space. In many residential areas such as in the parking near the Immigration department and the Al Mahatta Museum, only a small strip on the right side of the museum is left for free parking, with the rest being paid parking at Dh2 an hour. The Sharjah Municipality has offered an annual parking sticker — for Dh1,300 — for a car to be parked in two areas at the owner’s choice. But most motorists are saying they want the government to charge Dh700 like in Abu Dhabi for one parking area. Rao Naido, an Indian expatriate staying in Rolla, Sharjah for the past eight years, has been in this situation for the past three years. “Eight years back, it was free parking almost everywhere but now, almost all except the “kacha” areas, which can only accommodate between 300 and 500 vehicles in various areas, are free. It is also dangerous as other car owners just bump into your car while maneuvering to get in or out in such a crammed area,” he said. He said it takes him an hour or so waiting to get a parking space, especially when his wife goes out to buy groceries. “I have to stay back in the car, put on the hazard lights, and wait until I can get a space when someone moves out. Most of the time, I don’t get one. Coming from the office at 6pm, I have to rush to a “kacha” area, which is far from my residence, to vie for a space. The situation is so depressing. It requires so much patience.” Sameer Hamza, an Indian who has been living in Al Qasimiya, Sharjah for four years, says that he always rushes from work at 6pm to the “kacha” area near the Mega Mart to be able to park his car. “Once I park in the “kacha” area, I don’t want to move my car anymore because if I go out with my family to the Corniche to watch the lagoon as we used to do, I cannot find a space by the time I get back. By 11pm or midnight, there is no more parking space in the “kacha” area, which accommodates about 500 cars in an overcrowded place.” He said he has no option but to go to a paid parking area. “If I park my car in a paid parking regularly, I need between Dh100 and Dh150 a month. This is not possible for me,” he said. Mohammed Ahmed, a Pakistani who has been living near Al Mahatta Museum for years, said there was just a small strip of free parking in this area. Before, spaces there were free, but for the past year all has been made paid parking. “From my work, I always go back home to be able to get a parking space at a “kacha” area near Al Madina and Al Hilal Bank. After 8pm, I cannot get a parking space anymore. I will wait until 10pm, to get free parking, but many like me are eying the area to get free parking. Parking is free until 8am. Hence, I pay for an hour, from 8am to 9am at Dh2 an hour, then I drive my car to work.” Families going to Al Majaz Waterfront say they are paying Dh5 in green parking inside, seven days a week. Outside parking, which is always full, is Dh2 an hour. But, very few get a parking space. Many of the families say the parking problem is forcing them to stay away from a night out in the parks and other entertainment areas to avoid any inconvenience of not finding a parking space after they return home. Filipino Nando Reyes says they can heave a sign of relief on Friday, when the parking areas are free. But, he said, many prefer Dubai because the parking is free for two days, Friday and Saturday. Reports of some enterprising individuals leasing empty areas are aplenty. These leased areas are managed by several Asians who allegedly collect Dh200 a month parking fee from residents of the area in order to let them park. But, it is not known whether they register it with the government or if this ongoing business is in the knowledge of the authorities. – lily@khaleejtimes.com More spaces to be added: Municipality Afkar Abdullah A senior official at Sharjah Municipality has attributed the lack of parking areas in Sharjah to the increasing popularity of the emirate, which attracts more and more families due to its secure environment. However, the municipality is considering the issue and is working on alleviating the problem, by introducing more multi-storey car parking facilities as well as open car parking areas in places where the number of people residing exceeds the assigned parking areas for their cars. The municipality has completed the construction of more than 10 multi-storey parking lots in various parts of the city and is also making use of open areas to be used for parking vehicles. He added that the move has come to meet the current increasing demand from residents and to cope with the rapid constructional development in the emirate. The municipality said the project will be executed in areas where a lot of traffic congestion is witnessed, where many motorists resort to parking their vehicles on the roads. He said a team of inspectors and other municipal personnel are contributing effectively to reducing the traffic congestion in the crowded areas, adding that they have towed away many cars parked in public places for long periods and have also fined the owners. afkarali@khaleejtimes.com Continue reading
