Commerce and Industry Minister Anand Sharma has suggested an out-of-the-box idea of monetising 500 tonnes of gold at the current value, to contain the widening current account deficit (CAD), reported PTI.
"It is for the banking secretary, bankers and the RBI to see how you can monetise gold, (from) the country with over 31,000 tonnes of declared gold. That is the declared part. So, even if 500 tonnes is monetised, then in today's value, I think it takes care of CAD," he said at a meeting of the Board of Trade.
He, however, added that this "decision (of monetising gold) is beyond me... but I am just pointing in that direction. Can we do something there? I think we can, because you have to think out of the box."
As per the World Gold Council, 500 tonnes of gold is valued at about USD 25 billion. Globally, demand for gold in April-June was 856 tonnes, down 12 per cent from a year earlier.
The government has targeted a CAD of 3.7 per cent of GDP, or $70 billion, in the current financial year.
Dion Global Solutions Ltd.