Analysts: India Investors are Better to examine Inflation

Investors disoriented by Indian central bank minutes may wish to train their sights on basic trends in inflation than the volatile headline number
24 April 2018   1277

The Reserve Bank of India with its Bloomberg economists Tom Orlik and Justin Jimenez rate among the top 3 central banks, has a mandate to keep headline inflation around 4 percent in the medium prospective. But explanation from members of RBI’s rate-setting panel show they are more focused on core inflation - the gauge that strips out volatile food and fuel components.

Totally, focus on basic inflation is par for course. Is it had been claimed in the minutes of the April 4-5 meeting issued last week, Deputy Governor Viral Acharya said the headline inflation was being impacted by unstable vegetable prices, that wasn’t amenable to monetary policy actions. His colleague, Michael Patra, a noted hawk and head of the RBI’s research department, forced an increase in the repurchase rate, defining it with the stubborn rise in core inflation to above 5 percent.

The obstinate character of this inflation gauge along with an optimistic outlook for growth and require meant Acharya would vote for withdrawal of accommodation in the June policy meeting. That was far from early April, when Bitcoin investors explained  RBI’s lowering of near-term inflation projections as a signal that interest rates would remain on hold for sometime.

Priyanka Kishore, leading Asia economist at Oxford Economics in Singapore, declared  that investors would do better to keep an eye on the consumer price index excluding food, fuel and motor fuels, which is growing.

At the April policy meet, Governor Urjit Patel decreased inflation projections. The RBI is predicting inflation for April to September at 4.7-5.1 percent, slower than 5.1-5.6 percent made only two months back. It is supposed the second half inflation to ease to 4.4 percent, having earlier achieved it at 4.5-4.6 percent.

India’s annual headline inflation revealed for a third straight month in March to 4.28 percent from 4.44 percent in February. That hid an upward climb in core inflation making some policy makers uneasy.

Israeli BTC Investors to Face Catch 22

They need to pay taxes from Bitcoin investing in order to avoid their property arrest, but banks don't take their money due to AML issues
06 August 2019   148

Bitcoin investors in Israel are faced with the impossibility of paying taxes, as local banks refuse to accept funds received from the sale of cryptocurrencies because of the risks of money laundering and terrorist financing. About this writes the local edition of Haaretz on August 6.

Bitcoin is not recognized as a currency in Israel, therefore, individuals must pay 25% of the income from cryptocurrency trading to the treasury, and legal entities - 47%.

Investor Ron Gross told the publication that he acquired bitcoins in 2011 and reported his income to the tax office. In 2017, the bank that served Gross began to refuse to accept funds received from the sale of bitcoins. The investor met with representatives of the bank to demonstrate to them a 70-page history of bitcoin transactions as confirmation of the origin of the funds, but failed to convince them.

The tax authority is aware of the problem, but they say the ball isn’t in their courts. I’ve tried working with almost all the banks, but the minute they hear the word ‘Bitcoin’ they freeze up.

Ron Gross

Bitcoin investor from Israel


Since Gross was unable to pay taxes on time, his bank account, home, and even scooters were arrested. According to the investor, the tax authorities know about the problem, but can do nothing.

According to Haaretz, the tax office is aware of $ 86 million in unpaid taxes on income from cryptocurrency trading. It is possible that the real amount may be significantly higher.

Roy Arav, another Bitcoin investor, kept the proceeds from trading Bitcoin in an account with Israeli bank Discount under the control of the Bit2C exchange. The bank refuses to transfer money to Arava’s personal account under the pretext that its politicians forbid it to transfer funds related to virtual assets to client accounts due to the risks of money laundering and terrorist financing.

Arav also could not pay taxes and was forced to sue the bank. According to the investor, the authorities entered his position and granted him a deferral of time for the consideration of the claim.