Shri Vile Parle Kelvani MandalsMithibai College of Arts,, Chauhan Institute of Science &Amrutben Jivanlal college of Commerce and EconomicsVile Parle (West) Mumbai 400056

A PROJECT ON

Currency Convertibility

IN THE SUBJECT

Economics of Global Trade and Finance

SUBMITTED BY

NAME: Raihaan Esmail

ROLL NO.: 08 DIVISION: B

UNDER THE GUIDANCE OFPROF. Jaison Baby Thomas

TO

UNIVERSITY OF MUMBAIFORMASTER OF COMMERCE PROGRAMME (SEMESTER - II) YEAR: 2013-14

Shri Vile Parle Kelvani MandalsMithibai College of Arts,, Chauhan Institute of Science &Amrutben Jivanlal college of Commerce and EconomicsVile Parle (West) Mumbai 400056

EVALUATION CERTIFICATE

This is to certify that the undersigned have assessed and evaluated the project on Currency Convertibility submitted by Raihaan Esmail, student of M.Com. Part - I (Semester II) for the academic year 2013-14. This project is original to the best of our knowledge and has been accepted for Internal Assessment.

Name & Signature of Internal examiner

Name & Signature of External Examiner

PRINCIPALCollege Seal DR. D.B. GADAKARI

Shri Vile Parle Kelvani MandalsMithibai College of Arts,, Chauhan Institute of Science &Amrutben Jivanlal college of Commerce and EconomicsVile Parle (West) Mumbai 400056

DECLARATION BY THE STUDENT

I, Raihaan Esmail, student of M.Com. (Part I) Roll No.: 08 hereby declare that the project titled Currency Convertibility for the subject Economics of Global Trade and Finance submitted by me for Semester II of the academic year 2013-14, is based on actual work carried out by me under the guidance and supervision of PROF. Jaison Baby Thomas. I further state that this work is original and not submitted anywhere else for any examination.

Place:

Date:

Name & Signature of Student

ACKNOWLEDGEMENT

First and foremost I seek the blessings of my beloved teachers who keep lot of expectations on me and showering their infinite love for ever.

I would like to thank University of Mumbai for giving me this opportunity of taking such a challenging project, which has enhanced my knowledge about the various types of Quotas and tariffs with Illustrations.

I show my gratitude to the Principal, Vice Principal and Co-ordinator of Mithibai College who gave me a lot of moral support and under their guidance I was successfully able to complete my project.

And with deep sense of gratitude I would like to thank Prof. Jaison Baby Thomas for his immense help and co-operation.

INDEX

Sr.noTopic Page no.

1.Introduction1

2.Components of Current Account4

3.Components of Capital Account8

4.Current Account Convertibility9

5.Capital Account Convertibility12

6.Tarapore Committee17

7.Fuller Capital Account Convertibility19

8.Currency Crisis23

9.Financial Integration26

10.FCAC- Pros & Cons27

11.Political Implications For India29

12.Conclusion31

13.Bibliography35